MERRY CHRISTMAS FROM ALL OF US AT TOTAL FARM MARKETING!

TUESDAY, DECEMBER 24: The CME closes at 12:15 p.m. (CT), and Total Farm Marketing offices close at 1:00 p.m. (CT).

WEDNESDAY, DECEMBER 25: The CME and Total Farm Marketing offices are closed.

CORN HIGHLIGHTS:

• The corn market finished the week higher as the market used strength in the soybean market to trend higher for the second consecutive session. For the week, March corn futures finished 4 ¼ cents higher as prices are trading range bound in an overall direction.
• Forecast for a possible trending drier forecast in Argentina help pull the soybean meal market higher, supporting soybeans. A drier forecast could limit corn production, so the corn market moved in sympathy.
• USDA reported a flash export sale of corn this morning. Columbia bought 150,000 MT (5.9 mb) of corn for the current marketing year.
• With the Christmas holiday approaching next week, the market could turn choppy on thin or lighter trade volumes. The corn market will be open for a short trading session on Tuesday and closed on Wednesday next week in the Christmas Holiday trading hours.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher for the second consecutive day and have now taken back all but two cents of Wednesday’s sell-off. Soybean meal clearly led soybeans higher today with a gain of 3.66% in the January contract or $10.40. Soybean oil ended the day lower.
• Soybean oil continued to sell off today and posted large losses for the week as the expiration date for the 40B tax credit looms at the end of the year. The Biden administration has not yet approved the subsequent 45Z tax credit that would be in effect next year, and this has trade concerned.
• China is seemingly loading up on US soybeans before potential tariffs take effect in the Trump administration. Sinograin has bought 500,000 tons of US soybeans for delivery in March-April as they reportedly prefer the quality of US soybeans. There are concerns that export demand may slide next year if tariffs are implemented.
• For the week, January soybeans lost 13-3/4 cents at $9.74-1/2 while November 25 soybeans lost 19 cents at $9.87-1/4. January soybean meal gained $8.30 on the week to $294.50 and January soybean oil lost 3.13 cents to 39.48 cents.

WHEAT HIGHLIGHTS:

• After trading both sides of neutral, Chicago wheat closed slightly lower, while Kansas City and Minneapolis futures posted small gains. The sharp decline in the US Dollar Index alleviated some pressure on the wheat market, but a lower close for Matif wheat provided no support.
• Globally, weather in the northern hemisphere remains generally favorable for the wheat crop. While there is speculation about smaller Russian exports and potential quality concerns in European wheat, the larger harvests expected in Australia and Argentina are likely to offset these factors.
• According to the Buenos Aires Grain Exchange, as of December 19, Argentina’s wheat harvest is 76.1% complete, up from 63.9% the previous week. The production estimate remains unchanged at 18.6 mmt, compared to last year’s crop of 15.1 mmt.
• In a statement from the German Federal Statistics Office, farmers have planted approximately 4.8 million hectares of winter grain, reflecting a 5.6% increase year-over-year. Of this total, winter wheat accounts for 2.8 million hectares, marking a 12% year-over-year rise.
• The second vessel carrying wheat from Russia to Egypt has reportedly departed port. Egypt purchased 430,000 mt of wheat from Russia in September, but the shipments were delayed until recently. This vessel is said to be carrying 54,000 mt of wheat.
• According to the European Commission, the 2024/25 EU grain production estimate is now 255.8 mmt, down from 256.9 mmt in the November forecast. The soft wheat crop saw a decline from 112.3 mmt to 111.9 mmt for the same period.

DAIRY HIGHLIGHTS:

• Class III milk futures snapped a two-day losing streak, trading green across most contracts. The February contract was the biggest mover, gaining 47 cents to close at $19.69.
• Spot cheese was relatively unchanged, losing just 0.125 cents to close at $1.80625/lb. Whey was unchanged for the second straight day at $0.74/lb.
• Class IV milk futures jumped higher today after a great spot session for its products. January through April 2025 contracts now trade at $21.00 or higher.
• Spot butter saw impressive gains on Friday, trading 4.50 cents higher to close at $2.5550/lb. Powder gained 1.75 cents to close at $1.3925/lb.

Total Farm Marketing and TFM refer to Stewart-Peterson Group Inc., Stewart-Peterson Inc., and SP Risk Services LLC. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of the National Futures Association. Stewart-Peterson Inc. is a publishing company. SP Risk Services LLC is an insurance agency. A customer may have relationships with all three companies. TFM Market Updates is a service of Stewart-Peterson Inc. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

Author

Amanda Brill