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0:00 Wednesday's Rally
4:00 Mexico Tariff Comments
6:41 Lutnick Comments
7:56 Russia Wheat Situation
9:02 Fed Holds Rates Steady

Corn and Soybean Futures Surge 🌾
Corn and soybean futures saw a strong rally on Wednesday, with corn reaching a 7-month high at $4.97. 🌽 The tightening U.S. supply-demand situation continues to support these markets, and wheat futures also gained. 📈

Mexico Prepared for Potential Tariffs 🇲🇽
Mexican President Claudia Sheinbaum isn’t expecting immediate tariffs but has a plan in place if they are implemented. 🚨 A potential trade war could impact the $800 billion annual trade between the U.S. and Mexico, with Mexico being the top buyer of U.S. corn this year. 🌽

Trump’s Commerce Secretary on Tariffs 💼
President Trump's nominee for Commerce Secretary emphasized that tariffs could be avoided if Mexico and Canada curb fentanyl flows. He also discussed potential restrictions on China’s access to technology due to recent AI developments. ⚖️

Russian Grain Exports Expected to Decline 🌾
Russia’s grain exports are projected to drop significantly this season, falling to 57mmt from 72mmt last year, due to extreme weather conditions. 🌧️ Despite this, 82% of the country's grain crop is reportedly in good condition. 🌾

Fed Holds Interest Rates Steady 💵
The Federal Reserve kept interest rates steady, noting that inflation remains high and the job market is solid. President Trump criticized the Fed for allowing inflation to rise and promised to stabilize prices through energy production and better trade deals. 📉

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Federal Funding Freeze Temporarily Blocked
A federal judge has temporarily blocked President Trump’s funding freeze, which would affect various programs like the Inflation Reduction Act. 🛑 Programs supporting Americans, like Medicare and food stamps, are safe, but the freeze may impact the 45Z tax credit and biofuels. 💰

Corn Futures Near Recent Highs
Corn futures are just below recent highs, with tightening U.S. supply and strong demand driving prices. 🌽 Farmers in Brazil have planted only a small portion of their second corn crop. 📈

Tariff Threats Boost Dollar
The U.S. dollar gained strength following renewed tariff threats from President Trump. 💵 Trump is considering tariffs on imports like computer chips and steel, which is pushing the dollar higher. 📊

Contaminated Soybean Meal Found in Brazil
Sand was discovered in Brazilian soybean meal at the Port of Paranaguá, leading to rejections of contaminated shipments. 🌾 This comes as China halts shipments from five Brazilian companies. 🚫

Flash Sale of U.S. Corn to South Korea
U.S. corn exports saw a strong flash sale to South Korea, with competitive pricing likely to boost further sales. 🌽 Global demand for U.S. corn remains strong as Brazil’s larger crop is still in the works. 🌍

Federal Reserve Expected to Hold Rates
The Federal Reserve is anticipated to keep interest rates unchanged today, despite Trump’s calls for rate cuts. 💵 The decision comes as the Fed continues to assess inflation trends amid Trump’s economic policies. 📉

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Tariff Uncertainty Continues
President Trump’s tariff plans remain unclear, with reports suggesting a gradual increase starting at 2.5%. 🌎 Meanwhile, Canada is preparing for potential tariffs on U.S. goods, with some politicians pushing for a united global response. 🇨🇦

Brazil’s Soybean Crop Update
Brazil's soybean crop forecast has been slightly reduced, and the slow harvest is affecting the second corn crop. 🌱

Russian Wheat Prices Rise
Russian wheat prices rose due to a limited supply. 🌾

U.S. Export Trends
U.S. corn exports showed strength last week, but soybean shipments fell short of expectations. 🌽 Soybean shipments were down 26%, while wheat exports exceeded expectations. 📉

JBS Enters the Egg Market
JBS has entered the egg market, acquiring a stake in South America's top producer. 🥚

U.S. Corn Exports to Mexico
The U.S. exported corn to Mexico, continuing trade despite tariff threats. 🌽

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🟢 Key Updates on US Markets and Global Trade 💥

US Tariff Tensions: Colombia and Canada Respond
President Donald Trump announced the potential for a 25% tariff on Colombian imports after the country refused to allow US planes carrying deported migrants to land. In response, Colombia retaliated with its own tariffs on US goods. However, the situation calmed when Colombia agreed to accept the deportees. Colombia has already accounted for 9.7% of US corn export sales this year. Similar tariff threats are looming for Mexico and Canada, with 308 million bushels of unshipped corn from Mexico on the line.

Increased Net-Long Positions in Corn & Soybean Markets
CFTC data from January 21 revealed that funds increased their net-long position in corn to 322k contracts, the highest since May 2022. Additionally, funds were net buyers of 73k contracts of soybeans, marking the largest position since November 2023. This bullish sentiment indicates strong demand for US crops, despite global market challenges.

Argentina’s Dry Conditions Impacting Corn & Soybean Yields
Argentina’s crop outlook is being negatively impacted by hot and dry weather. The USDA’s attaché office has lowered its corn forecast to 49 million metric tons (mmt), down from the 51mmt forecast. Corn exports are now expected to total 34mmt, lower than the 36mmt forecasted by USDA. Argentina's soybean crop is also facing yield reduction due to the dry conditions.

China Imposes Temporary Soybean Import Restrictions
China has imposed restrictions on soybean imports from five Brazilian exporters after they failed to meet plant health standards. Although the volume affected is small, the disruption could have broader implications for global soybean trade, particularly in the face of rising tensions with the US. Brazil’s soybean exports to China remain strong, while US soybean sales are being overshadowed.

Wheat Crop Damage from Extreme Cold
The US winter wheat crop is suffering from an Arctic blast, with 15% of the crop potentially killed by bitterly cold temperatures. The Commodity Weather Group forecasts a 6.7% reduction in HRW wheat production and a 3.5% decline in SRW wheat.

US Export Sales Show Strength Despite Global Setbacks
US corn exports surged to 1.7mmt (65 million bushels), marking a 62% increase compared to the previous week. Soybean exports, however, were weaker at 973,145mt (36 million bushels), a 28% drop from the previous week. Wheat exports also disappointed at 164,800mt (6 million bushels), falling far below expectations.

Global Markets React to Tariff Uncertainty & Economic Moves
US stock markets experienced sharp declines, with the Nasdaq down over 4%, driven by fears surrounding President Trump’s tariffs. The US Dollar weakened, while global equity markets, especially in Japan and Mexico, surged as they benefitted from trade optimism.

Cattle Report Reveals Bullish Trends in Beef Market
The Cattle on Feed Report showed a 1% decline in cattle numbers as of January 1 compared to last year. Placements in December were below expectations, signaling a bullish outlook for the beef market. The lighter placements combined with increased marketings suggest reduced cattle numbers, likely leading to tighter beef supplies.

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🌱🌽 Argentina’s soybean and corn crop forecasts were cut due to hot and dry weather. The Buenos Aires Grains Exchange now predicts the soybean crop will reach 49.6 million metric tons (down 1mmt) and the corn crop 49 million metric tons (also down 1mmt). While some rain is expected in soybean areas soon 🌧️, the intense heat 🌞 will likely limit its benefits.

🇦🇷 To help farmers struggling with drought and low crop prices, Argentina is temporarily reducing export taxes on soybeans, soybean products, corn, and wheat 🌾. The tax cuts, fulfilling a campaign promise by President Javier Milei, will start Monday and run through June. Farmers have been facing a rainfall deficit since December, making these changes critical.

🛢️ Brooke Rollins, President Trump’s nominee for Agriculture Secretary, promised to support all fuel types, including biofuels. During her hearing, she distanced herself from her previous employer, who opposed biofuels, and committed to following Trump’s energy dominance plan. Rollins also plans to work on 45Z tax credit guidance with Treasury Secretary nominee Scott Bessent. Meanwhile, Trump announced plans to declare a national energy emergency, which may allow year-round sales of E15 fuel.

🚜 Rollins also said she might consider direct payments to farmers hurt by tariffs, similar to Trump’s earlier approach. During his first term, the administration spent billions to offset losses from retaliatory tariffs on US soybeans. Some senators criticized this method, saying farmers prefer to sell their products rather than rely on government aid. Rollins also aims to reduce the $42 billion agricultural trade deficit and expand trade markets, though she had no response when asked about the impact of mass deportations on farmworkers.

🍶 US ethanol production increased last week, hitting 1.1 million barrels per day, up 4.3% from the same time last year. Ethanol stocks rose to 25.9 million barrels, a 3.5% increase from the previous week. Gasoline demand, however, dropped by 2.9% compared to the week before.

🌾 The USDA’s latest drought report shows little change in conditions. The Corn Belt saw limited rain, with slight improvements in northern Indiana and Illinois. The High Plains remained dry, and cold air from Canada brought temperatures 12–15°F below normal.

Drought Impact:

• 🌽 Corn: 42%
• 🌱 Soybeans: 35%
• 🌾 Winter Wheat: 23%
• 🌾 Spring Wheat: 45%
• 🐄 Cattle: 33%

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A bipartisan group of senators has reintroduced the Farm to Fly Act to speed up the production of SAF. The legislation would clarify SAF eligibility in the USDA's current bioenergy programs and expand markets for crops used in SAF production. It would also clarify the federal definition of SAF for USDA purposes and promote more collaboration on aviation biofuels within the USDA. Six senators from the Midwest reintroduced the bill. Agriculture, aviation, and energy groups have all expressed support for the legislation. The reintroduction came one day after President Donald Trump signed an executive order freezing any new federal rules for 60 days, including the 45Z tax credit guidance.

USDA reported a flash sale of corn on Wednesday. US exporters sold 136,000mt (5mil bushels) of corn to unknown destinations for delivery during the 2024/2025 marketing year. Current marketing year corn sales are the third best in the last ten years.

China has suspended Brazilian soybean shipments from five companies. China's General Administration of Customs halted the shipments after finding pesticides and pests during a routine inspection. Authorities did not release the number of cargoes or the volume of soybeans affected by the suspension. However, the Brazilian Ministry of Agriculture reported that the ban is not expected to affect Brazil's overall soybean exports to China. The ministry is expected to provide China with the necessary information to lift the temporary suspensions. The firms included in the ban are some of the largest soybean suppliers to China.

Weather forecasts for southern Brazil and Argentina have turned slightly wetter. Rains are slated to return to southern Brazil and northern Argentina by Sunday. Southern Brazil, in particular, should see widespread coverage during the next 5 days. The 5-10 day period introduces slightly better rainfall for key Argentina soybean areas. This morning's extended GFS model, however, is again drier for much of Argentina's soybean country. Despite the rain, parts of Argentina, including Buenos Aires, may remain drier than normal.

President Donald Trump is pressuring Russia to negotiate an end to the war with Ukraine. On Wednesday, Trump said that Russia needs to make a deal to end the war, or the US will impose tariffs, higher taxes, and sanctions on Russian imports. The same would apply to other countries providing financial support to Russia. It's unclear which specific Russian goods would be targeted, but Russia's main oil producers could be included. Tariffs, however, won't be overly impactful given that the US only imported about $4.6 billion worth of Russian goods in 2023, accounting for only 0.2% of total imports.

President Donald Trump's nominee for Agriculture Secretary previously opposed ethanol and farm subsidies. Brooke Rollins served as president and CEO of the Texas Public Policy Foundation from 2003 to 2018. During that time, the organization claimed that government support for ethanol led to an increase in emissions and a rise in food and fuel prices. In 2016, while Rollins remained in her position with the nonprofit, the group advocated for the elimination of farm subsidies. Despite Rollins' controversial history on policies affecting farmers, more than 400 state and national agricultural groups endorsed her to lead the USDA.

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0:00 Rumors and China
3:27 Corn/Soybean Acreage Estimates
6:47 China Tariffs on Feb 1st?
8:24 South America Update
10:25 Strong Corn Shipments

🟢 US Corn Market Shows Positive Signs Amid China Rumors & Export Surge 🌽

There were rumors on Tuesday regarding potential Chinese purchases of US corn, following a Monday announcement from the Chinese government indicating plans to increase the scale of corn purchases and expand grain storage. Despite China’s imports of US corn being near zero this year, the possibility of increased demand has positively impacted the corn market, with spot-month corn futures reaching their best levels since October 2023. 📈🌾

📊 S&P Global Adjusts US Corn and Soybean Acreage Estimates 🌱

S&P Global Commodity Insights has increased its forecast for US corn acreage to 93.5 million acres, a 700,000-acre increase from its previous estimate. This is a 2.9 million-acre increase compared to 2024. However, soybean acreage is expected to decrease by 700,000 acres, with the forecast now at 83.3 million acres. This aligns with USDA projections of 82.9 million acres for corn and 86.1 million acres for soybeans. 🌽

🚨 Trump Considers Tariffs on China, Mexico, and Canada 💼

President Donald Trump is weighing a 10% tariff on China as early as February 1, citing China’s role in the fentanyl trade. Trump is also considering a 25% tariff on imports from Mexico and Canada, with the aim of curbing illegal immigration and addressing trade concerns. These potential tariffs come on the heels of earlier proposals for a 60% tariff on Chinese goods. Traders are reacting to these ongoing developments, as tariffs could impact global trade and affect US exports. 💥

🇧🇷 Brazil’s Soybean Crop Outlook Raised 🚜

The Brazilian Association of Vegetable Oil Industries (ABIOVE) has raised its forecast for Brazil’s soybean crop to 171.7 million metric tons (mmt), up from 168.7mmt. Exports are expected to reach 106.1mmt, a 2.6mmt increase from previous estimates. Soybean crush is also expected to slightly rise to 57.1mmt. The US Department of Agriculture (USDA) forecasts Brazil’s crop at 169mmt, while Brazil’s crop agency Conab estimates 166.3mmt. 🌱🌍

📦 US Corn Exports Surpass Expectations 📈

US corn exports exceeded expectations last week, with 1.5mmt (61 million bushels) inspected for export during the week ending January 16. This marked a 6.9% increase compared to the prior week and a 106% increase compared to the same week in 2023. Meanwhile, soybean shipments were disappointing, falling to 973,145mt (36 million bushels), 28% lower than the previous week and 18% lower than last year. Wheat shipments also fell short, down 13% from the prior week.

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0:00 Argy Rains Disappoint
2:11 Slow Brazil Harvest Start
4:15 Tariff Update
7:41 The Funds
10:06 Soy Exports to China Decline
11:36 Bitcoin and Trump Meme Coin

🌧️ Weather Woes Continue for Argentina and Brazil 🌾
While Argentina and southern Brazil received some rain over the weekend, soybean crops are still struggling with dryness in key areas. Argentina’s central soybean regions received up to 1" of rain, but much of the problem areas remained dry. Forecasts indicate that rainfall will stay scarce in the next 5 days, though better chances are expected later, based on the Euro model.

In Brazil, the soybean harvest is facing its slowest pace in four years, with just 1.7% of the crop harvested as of last week, far behind 6% last year. Excessive rain in Mato Grosso has hindered progress, making this the slowest start to the harvest since the 2010/2011 season. This has also delayed planting for Brazil's second corn crop, with planting at just 0.3%, far below last year's 4.9%.

💼 Trump Delays Immediate Tariff Action 🚨
President Donald Trump has delayed the immediate implementation of tariffs on imports from Canada and Mexico, opting instead for a review of trade policies with China, Canada, and Mexico. The main focus is on ensuring that trade deals such as the USMCA and the Phase One trade deal with China are being adhered to. This delay offers some relief to those concerned about immediate tariff impacts, though Trump is still considering 25% tariffs by February 1st on goods from these countries.

📈 Fund Positioning Shows Optimism in Corn & Soybean Markets 🌽
"The Funds" have significantly increased their net-long positions in corn and soybean markets. For the week ending January 14, large money managers were net buyers of 48k corn contracts, bringing their total long position to 292k contracts, the largest since May 2022. Soybean markets also saw substantial buying, with 73k contracts purchased, making this the largest net long position in soybeans since November 2023. The funds were also net sellers of 5k contracts of SRW wheat, signaling more focus on corn and soybeans.

🇨🇳 US & Brazil Soybean Exports Diverge 📉
US soybean exports to China declined by 5.7% in 2024, reaching 22.1mmt, while Brazilian exports surged by 6.7% to 74.7mmt. As Brazil’s market share in China increased to 71%, the US share dropped to 21%. This shift reflects growing competition between the two countries. Argentina’s soybean exports to China also jumped, more than doubling to 4.1mmt. 🌍

💰 Bitcoin Reaches New Heights Before Inauguration 🪙
Bitcoin surged to a new all-time high, surpassing $109,000 early Monday, as President Donald Trump's administration is expected to create a pro-crypto regulatory environment. This surge in Bitcoin prices was fueled by anticipation of Trump’s potential crypto advisory council and the creation of a national Bitcoin reserve.