Industry Groups BEG for Direct Payments: Do Farmers Even Want the Money??

Grain Markets and Other Stuff

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0:00 Direct Payments?
3:46 Drier Argentina
5:23 "The Funds" and Corn
8:31 Brazil Deforestation
9:55 Mexican Cattle Imports Still Suspended
US Corn and Soybean Industry Groups Push for Financial Assistance
US corn and soybean industry groups are urgently seeking financial assistance for farmers. With Congress yet to release or vote on its year-end spending package, farm groups are pressing for legislation to provide economic support due to challenging market conditions and poor weather. Although Congressional leaders have indicated the package does not currently include aid for farmers, both groups are calling for renewed talks on a potential aid package. There may be fresh developments on the FARM Act today.
Argentina's Soybean Areas Face Dry Conditions
Some Argentina soybean areas are likely to experience below-normal rainfall over the next two weeks, particularly in the key northern areas of the Buenos Aires province 🌾. Soybean areas further north are expected to see more normalized rainfall, while Brazil will experience above-normal rainfall across most soybean-producing regions, except for far southern areas, which have already been too wet. These rainfall patterns are crucial for crop development, and further changes could impact overall yield forecasts.
The Funds Increase Net-Long Position in Corn
Fund traders significantly increased their net-long position in the corn market last week, with the CFTC data showing that as of December 10, large money managers were net buyers of 92,000 corn contracts. This brings the total net-long position to 166,000 contracts, the largest since February 2023. Funds also bought 15,000 soybean contracts and 3,000 SRW wheat contracts on the week, reflecting bullish sentiment in the grain markets.
New Brazilian Laws Threaten Amazon Soy Moratorium
New laws in several Brazilian states, including Mato Grosso and Rondonia, may weaken soybean restrictions in the Amazon, particularly regarding the Amazon soy moratorium. This moratorium, established in 2006, bans companies from buying soybeans produced on deforested land after 2008. Environmental groups are strongly criticizing the new laws, which remove tax incentives for companies that comply with the moratorium.
Mexican Cattle Imports Delayed Until Next Year
Mexican cattle imports are not expected to resume until next year. The USDA reported that shipments are likely to resume incrementally after the New Year, with full resumption expected later in the year 🐄. Imports were halted in November after the detection of New World screwworm in a cow near the Guatemalan border. The USDA is using $165 million from the Commodity Credit Corporation to help eradicate the pest in Mexico and Central America.
USDA Flash Sale of Soybeans
The USDA reported a flash sale of 200,000mt (7 million bushels) of soybeans to unknown destinations for delivery in the 2024/2025 marketing year.