- Today’s theme has been one of consolidation, corn and wheat futures in Chicago have eased and early gains in soybeans have similarly been eroded. Dry Argentine weather forecasts are being discounted by traders who are holding profits ahead of the weekend (it’s only Wednesday!) and Friday’s USDA report. We should also not discount the fact that weather forecasts can, and do, change in the space of a weekend, and traders would not want to be caught wrong footed, in a long position, should this be the case. The opening market next week could well prove interesting/exciting depending on weather updates.
- US President Elect Trump is said to have picked Terry Branstad, a longtime friend of Chinese President Xi Jinping, as US Ambassador to China according to media sources. The appointment may go some way to cooling off building rhetoric that the new administration wants to label China as a currency manipulator. The appointment is being cheered by many US farm groups, that have been worried about nationalism and more protectionist trade policies. There is no indication from the new Trump Administration that they are planning to extend the $1.00/gallon credit for biodiesel producers. The credit will expire on January 1st. Most Washington sources expect that any new support to the US biodiesel industry will come from a comprehensive tax legislation that could be enacted by the second quarter of 2017, until then, many biodiesel producers will be left wondering about their future profitability.
- Big picture – one can only be bearish with improved rain chances across Argentina and S Brazil.