2.7.25 Tredas Recap

Weekly Action:

March25 Corn up 5 at $4.88

March25 Beans up 4 at $10.48

March25 KC Wheat up 22 at $6.03

April25 Hogs up 1.775 at $92.075

April25 Fats down 5.50 at $196.775

March25 Feeders down 11.20 at $265.175

Dec25 Corn up 4 at $4.65

Nov25 Beans up 6 at $10.58

July25 KC Wheat up 22 at $6.23

Grains:

Markets gapped lower Sunday on tariff talk, only to rebound mid Monday and going back to test resistance levels midweek that lie at $5.00 March corn and $10.75 March soybeans. Corn traded in a 25c range this week and soybeans traded a 50c range.

President Trump is set to announce more tariffs next week, but didn’t state which countries he would be targeting. The main issues with China/US tariffs lie with their unwillingness to comply with Phase 1 purchase agreements & are based upon the fact the US has banned computer chips coming from China. The February WASDE report is slated for Tuesday, which is expected to provide minimal to zero changes.

Mexico officially removed all restrictions on GMO corn usage, allowing GMOs to be used for human, livestock, and industrial purposes.

This week, a bipartisan group of US Senators have reintroduced the American Beef Labeling Act which would reinstate mandatory country of origin labeling for beef (MCOOL).

Something to keep an eye on: In 2023, USAID supplied $12 million worth of equipment to enhance grain export capacities and resilience under its Economic Resilience Activity (ERA). Additionally, fertilizer and seeds were distributed to over 8,200 farmers across 15 regions. The agency also allocated an extra $250 million in 2023 for future agricultural growth through its Harvest program

Weather:

Regular rainfall is predicted across Central and Northern Argentina and southern Brazil over the next two weeks. Drier weather will persist in Northern Brazil, speeding harvest along and helping to seed the winter crop.

 It might be hard to believe, but you may start seeing Texas farmers planting corn soon! Southern Texas will begin their growing season lacking soil moisture with little help on the way. The UNL Drought Monitor is still showing widespread soil moisture deficits. The western corn belt will need springtime rain. It’s good weather for calving though!

 Economy:

State Farm, California’s largest home insurer, is asking state officials to approve an emergency 22% rate hike due to wildfire claims.

The use of powder from meal worm larvae as a food ingredient will be allowed in Europe next week. On February 10, a new EU regulation allows up to 4% of UV-treated insect powder to be contained in food products such as bread, cheese, jams, or pasta.

Equinor, the state-run Norwegian oil and gas company announced this week it is lower its ambitions in wind power. Just two months ago it invested $2.3 billion for a 10% stake on a struggling European wind giant Orsted.

The BBC is reporting Britain will have to get rid of 9% of all its farmland in order to meet government Net Zero climate goals.

It’s reported 40,000 U.S. federal employees accepted the Trump administration’s offer to leave their positions but be paid through September. This is currently being held up by the courts as opponents claim it goes against union rules.

Senators Josh Hawley and Bernie Sanders introduced a bipartisan bill to cap credit card interest rates at 10%. In 2022, Americans paid $105 billion in credit card interest.

According to Edmunds, around 24% of care owners have “negative equity”, meaning they owe more on their loan than their car is worth.

Jobs added in 2024 have been revised down 600,000, meaning employment numbers were juiced heading into the election.

The Wall Street Journal reported over $50 billion in fraud surrounding Medicare. Insurers have been systematically diagnosing fake diseases in patients so they can overbill the federal government.

Something That Probably Means Nothing:

1946

1946

1961

1946

1942

1946

The birth years of the last six United States Presidents.

Quote of the Week:

“I’m going to Disney World!” – Phil Simms

 Simms was the first Super Bowl MVP to exclaim this line after beating the Broncos in 1987. He was paid $50,000 to say the line which appeared in commercials the next day.

Enjoy your weekend!