*Prices are as of 11:15 am 12/23
This week’s action:
Corn Mar up 17 @ $6.67
Beans March up 16 @ $14.87
KC Wheat Dec up 31 @ $8.76
Feeders Jan flat @ $183.825
Fats Feb up 1.525 @ $161.450
Hogs Feb up 2.90 @ $87.875
Crude Feb up 5.33 @ $79.95
Corn Dec23 up 7 @ $6.04
Beans Nov23 up 10 @ $13.94
KC Wheat July23 up 31 @ $8.63
Brazil has recently been approved to increase corn exports to China and are on pace to double what they shipped to China last year. The United States accounted for 70% of Chinese purchases in 2021. Ukraine has been able to keep its status as a Top 5 world exporter, despite the ongoing war with Russia.
It’s been a quiet week of trade with Christmas on everyone’s mind. New crop Dec23 futures have traded within a 5.90-6.05 range the entire month of December while Nov23 beans have traded between 13.70-14.03 over the same time. July23 KC wheat has rallied this week due to the cold weather throughout the plains. KC wheat futures are still down $1.50 from October.
To put things in perspective: Dec23 corn is 50 cents higher than Dec22 was this time last year and $1.50 higher than Dec21 corn this time two years ago.
Ascot, a large insurance company who underwrites international cargo vessels, announced there will be no rate increases for the Black Sea region in 2023.
There are glaring problems in parts of Argentina but that is being close to being “baked in”. Brazil is still optimistic they will have a record large soybean crop in about two months.
It’s cold in America!
Argentina has had a few spotty showers lately amid growing thoughts La Nina may be ending. Warm winds off the Pacific Ocean should boost Argentine precipitation into January. Brazil is expecting widespread rains over the weekend. Temperatures will also be moderate the next two weeks.
According to WalletHub, Americans will end 2022 with $110 billion more in credit card debt than last year.
The median price of an existing home sold in the US has fallen 10% from the June peak. This is the largest 5-month percentage price decline since 2011. Housing prices fell 33% after the last housing bubble and a similar move would put home values near February 2020 levels.
Existing home sales fell for the 10th consecutive month, down 35% from a year ago. This is the largest year-over-year decline on record.
Last week, the FED continued its fight against inflation, raising rates another 50 basis points. The internal loan rate has gone from essentially 0% to 4.33% since March.
Something that Probably Means Nothing:
This week, Wells Fargo agreed to pay $3.7 billion in fines for widespread loan violations concerning auto loans and mortgages. Wells Fargo made about $21.5 billion last year.
Wells Fargo has paid over $22 billion in fines since 2000.
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