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U.S. Corn Yield Falls In January WASDE Report

The USDA released its January WASDE report Tuesday morning.
 
Dan Basse is president of AgResource Company in Chicago.
 
"The report came out as bullish. The big shocker was the drop of U.S. corn yield of about 3.8 bushels an acre. That cut 325 million bushels from U.S. corn production, a sizable number looking back to the November estimate and got the corn market rising. We also found that feed residual consumption, that feed usage in the first quarter...was also record large. Not only did we lose a lot of corn, we also found this strong demand component for domestic use."
 
Basse notes corn futures in Chicago were up 25 cents (daily limit) at mid-day.
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U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again


The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!