MAR BEANS 
A dichotomy of weather conditions currently exists in South America where Brazil has long had abundant moisture which suggests a record crop – while Argentina recently has had a spate of dryness – which has spread to S Brazil! It’s too early to declare a full-flown drought in Arg but enough concern exists to support the mkt on any setbacks! Should the dryness extend into late Jan, the mkts will respond with a strong rally! Export inspections are running 27% over last year! Meanwhile, the USDA will issue its Jan WASDE this Friday – which will include US & global carry-out and final yield & production #’s! Yield is pegged at 182.7 (Nov-183.1) & production at 4.453 (Nov-4.461)! Prices will chop until Fri!
MAR CORN 
Since harvest, Mar Corn has rallied 50 cents (410-460) – reflecting a stout export mkt due to the US’s strong price advantage globally! Today was yet another example with a flash sale of US corn to Columbia! As well, ethanol demand has been excellent domestically! The dryness in Arg just gives the corn mkt further support! Yet, corn in the mid-4’s is still historically cheap & invites further buying if smaller-than-expected crops emerge from Arg & Brazil! Final 2024 #’s are due Friday from the USDA with yield at 182.7 (Nov-183.1) & production at 15.095 (Nov-15.143)!
MAR WHT 
Mar Wht displayed solid bullish divergence today holding higher against lower corn & beans! Cumulative export inspections are running 25% over last year! The mkt is cheap enough to attract even more demand! A technical confirmation of a low will unleash a torrent of buying – likely helped by accompanying post-harvest rallies in its sister mkts corn & beans! Russia’s disappointing crop will mean fewer exports & will support Mar Wht! All mkts will pause this week – awaiting Friday’s USDA Supply & Demand Report at 11am!
FEB CAT 
The above chart speaks volumes about the strength of the cattle mkt – featuring higher highs & lows the past 4 days off – strong cash & technicals, bitter cold & tighter fed Cattle supplies into the 1st Qtr! On the macro side, 3 interest cuts in 2024 & Trumps election further emboldens the cattle uptrend! Even very tepid export demand hasn’t impeded the up-surge as domestic demand has alone carried the mkt!
FEB HOGS 
Just turn the Feb Cat chart upside down & you have the Feb Hog chart – which needless to say is a real head-scratcher! The total divergence of the 2 sister mkts since early Dec is quite unusual – especially considering the built-in price advantage of pork in the supermarket! But, starting 12-1, Feb Hogs have broken $10 (89-79) while Feb Cat has rallied that same $10 (186-196) – a stark contrast indeed! Meager export demand has also afflicted the hog mkt but, unlike cat, its domestic demand was unable to pick up the slack! A still high fund long position continues to burden the hog mkt!More By This Author:AgMaster Report – Tuesday, Dec. 31
AgMaster Report – Wednesday, Dec. 11
AgMaster Report – Monday, Dec. 2
