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📉 US Farmer Selling Increases Amid Economic Pressures 🚜
According to Reuters, US farmers have increased their selling of corn and soybeans this week, following the USDA's report that reduced the 2024 corn and soybean production estimates. Despite the recent rally in grain markets, farmers continue to face low profits and rising input costs. Farm income has fallen by nearly 23% since 2022, raising concerns about the year ahead.

🌱 Soybean Futures Fall Despite Tighter US Supply 🛑
Soybean futures dropped sharply on Thursday, with the Mar25 contract losing 25 cents per bushel 🌾. While the US supply and demand situation has tightened, global soybean supply remains burdensome, and recent improvements in the weather forecast for southern Brazil and Argentina may have triggered the selling. The global market's supply concerns persist, but farmers and traders alike will be watching the weather patterns closely as these two key regions experience different growing conditions 📉.

🌍 Brazil's Soybean Crop Forecast Slightly Raised 📈
Agroconsult has slightly raised its forecast for Brazil's soybean crop to 172.4mmt, a small increase from its previous estimate of 172.2mmt 🌱. This increase is attributed to ideal weather and favorable planting conditions in most areas of Brazil. However, excessive rainfall in central Brazil and dry conditions in southern Brazil could affect harvest and yields. Despite these concerns, Brazil’s overall soybean production is set to remain strong, with record acreage expected 🌾.

💼 Trump’s Treasury Nominee Defends Tariff Plans 💰
During his confirmation hearing, Scott Bessent, President-elect Donald Trump's nominee for Treasury Secretary, defended the tariff proposals, suggesting they would be implemented gradually over the coming months 📊. Bessent emphasized that tariffs would help address unfair trade practices and geopolitical issues, despite concerns from some senators about their potential impact on inflation.

US export sales showed improvements in corn and wheat but remained weak for soybeans. 🌾
Corn sales reached 1mmt (40 million bushels), surpassing expectations, with Japan as the largest buyer 🇯🇵.
Soybean sales were 569,100mt (21 million bushels), slightly up from the previous week but down 27% from the 4-week average . China was the largest buyer 🇨🇳.
Wheat sales reached 513,400mt (19 million bushels), exceeding expectations, with South Korea as the largest buyer 🇰🇷.

🌧️ USDA Drought Monitor Shows Limited Improvement 🚨
The USDA released its weekly drought monitor, showing minimal precipitation across the Corn Belt and High Plains. However, drought conditions improved slightly in eastern Ohio, northern Indiana, and northeast Missouri, while worsening in southwest Nebraska 🌾🌧️. Here’s a breakdown of the areas still affected:

Corn: 42% affected 🌽
Soybeans: 34% affected 🌱
Winter Wheat: 22% affected 🌾
Spring Wheat: 33% affected 🌾
Cattle: 32% affected 🐄

📦 Flash Sales of Soybeans and Corn 📊
In another round of flash sales, US exporters sold:
132,000mt of soybeans (5 million bushels) to China 🇨🇳 for the 2024/2025 marketing year.
135,000mt of corn (5 million bushels) to Taiwan 🇹🇼 for the 2024/2025 marketing year.

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0:00 Subscribe!
1:00 Canada Tariff Threat
3:45 45Z / CSA
5:42 NOPA Crush
8:13 Argentina Rainfall
9:58 Ethanol Production
10:59 Consumer Inflation

Canada's Potential Tariffs on US Products
Canada is preparing to impose tariffs on $105 billion worth of US products if President-elect Donald Trump moves forward with his planned tariffs on Canadian goods. The list of products targeted by Canadian tariffs hasn’t been disclosed yet, but they could affect almost a third of US exports to Canada. 

USDA Issues New Rule for Climate-Smart Biofuels
The USDA has announced an interim rule regarding climate-smart practices for biofuel feedstocks. This includes corn, soy, and sorghum and provides farmers with more flexibility to adopt practices like no-till, cover crops, and nutrient management to reduce greenhouse gas emissions. This rule will tie into the 45Z tax credit guidance, potentially unlocking new market opportunities for farmers producing biofuel feedstocks. 

US Soybean Crush Hits Record High
The National Oilseed Processors Association (NOPA) released its December crush data, showing that US soybean crush hit an all-time high of 206.6 million bushels. This is a 6.9% increase from November and a 5.8% increase compared to last year. Soybean oil stocks climbed to 1.2 billion pounds, although they were slightly below trade estimates. This marks a strong 2024 for soybean production and oil availability.

Argentina's Crop Outlook Revised
The Rosario Grains Exchange has lowered its corn and soybean crop estimates for Argentina. Argentina's corn crop is now projected at 48mmt, down from previous estimates of 50-51mmt due to dry conditions. Similarly, soybean output is expected to fall, as droughts have reduced yields. The revised forecasts suggest that rainfall in both Argentina and southern Brazil could provide some relief in the coming weeks.

US Ethanol Production Remains Strong
US ethanol production fell slightly by 1% last week to 1.1 million barrels per day but remains up 3.1% compared to last year. Ethanol stocks rose to 25 million barrels, marking a 3.6% week-over-week increase. Implied gasoline demand showed a slight dip, down 1.8% from the previous week, but remained steady year-over-year. Keep an eye on ethanol production as it continues to play a key role in biofuel output and agriculture!

Inflation Indicator Declines for First Time Since July
Core CPI (excluding food and gas) rose by 0.2% in December, showing the first decline since July. The annual increase is now 3.2%, down slightly from 3.3% in November. Headline CPI rose to 2.9%, staying in line with expectations. Experts are concerned that Trump’s economic policies could cause inflation to resurge. 

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0:00 Reduced Tariff Threat and US Dollar
3:43 Differing Tariff Opinions
6:46 Grain Marketing WARNING
7:37 CONAB Report
9:52 FTC and John Deere
10:57 Wholesale Inflation
12:24 Flash Sale

💰 President-Elect Donald Trump's Tariff Proposal: Gradual Increase 🌐
President-elect Donald Trump’s economic team is deliberating a gradual increase in tariffs starting next year. This approach aims to increase negotiating power while avoiding inflation spikes. The announcement on Tuesday triggered a decline in the US dollar and US Treasury yields 📉. The Bloomberg Dollar Spot Index fell 0.4%, and the 10-year Treasury yield dropped to 4.75% 📊.

🇨🇳 China's Soybean Trade: Is There a Tariff Threat? 🌾
Analysts are divided on whether China will impose tariffs on US soybeans. While trade between the US and China remains crucial for both countries, China’s domestic production of soybeans is growing, which could reduce its reliance on US imports 🌱. However, US farmers support Trump’s policies, and he is unlikely to harm their interests. Analysts suggest that a phase two trade deal could address these concerns and ensure continued soybean trade.

🌾 Brazil’s Soybean Crop Projected to Reach Record High 🌎
Brazil's crop agency, Conab, forecasts a record Brazilian soybean crop of 166.3 million metric tons (mmt), an increase of 12.6% from last season 📈. This is due to favorable growing conditions and a projected rise in soybean acreage. Soybean exports are expected to hit 105mmt, a 6.5% increase from last year 🚢. However, Brazil's corn production estimate was slightly lowered to 119.6mmt due to drier conditions in southern Brazil 🌽. See Brazil and Argentina weather maps below for more on the agricultural impact 🌧️.

⚖️ FTC vs. John Deere: Lawsuit in the Works? 🚜
The US Federal Trade Commission (FTC) is considering a lawsuit against John Deere for restricting repair access 🛠️. The FTC claims Deere's practices violate competition laws by denying farmers and independent repair shops access to necessary diagnostic tools. This has led to an increase in maintenance costs for agricultural equipment by 48% in the past four years 🚜. The FTC has been investigating Deere since 2021, and a decision on filing the lawsuit is expected soon 🏛️.

📉 Wholesale Inflation Tamer Than Expected 📊
Wholesale inflation in December came in below expectations, with the PPI rising by 3.3% compared to last year (up from 3% in November). The figure was still lower than the anticipated 3.5% increase 📉. Monthly prices rose by just 0.2%, well below the expected 0.4% 📈. 

🌱 Flash Soybean Sale 🚢
The USDA reported a flash sale of soybeans on Tuesday 🌾. US exporters sold 198,000 metric tons (7 million bushels) to China for delivery in the 2024/2025 marketing year.

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0:00 Big Row Crop Rally
3:04 The Funds
5:12 Canada Tariffs?
8:07 China Soybean Imports
9:42 South America Update
11:34 Grain Shipments

Corn and Soybean Futures Rally Again
Corn and soybean futures continued their upward trend on Monday, with Mar25 corn contracts gaining 6 cents per bushel, marking its best close since June 18th. The rally from the August low to Monday’s high saw a 72-cent increase, or about 18%. Meanwhile, Mar25 soybean contracts gained nearly 28 cents per bushel, achieving its best close since October 8th. From December’s low to the overnight high, the contract rose by $1.10, or approximately 12%. These market movements reflect a tightening of US supply and demand, driven by bullish data from USDA last Friday.

Trump’s Tariffs on Canada to Include Oil
In a major development, President-elect Donald Trump is planning to include oil in his tariffs on Canadian imports. The premier of Alberta confirmed the news after meeting with Trump over the weekend. Canada is expected to retaliate with its own tariffs, potentially restricting energy exports to the US. Alberta supplies nearly 4 million barrels per day of oil to the US, which could have significant implications for energy prices.

China’s Record Soybean Imports in 2024
China has imported a record 105.03 million metric tons (mmt) of US soybeans in 2024, marking an increase of 6.5% from 2023. This surge in imports is attributed to concerns about potential US-China trade tensions under Trump’s administration, along with favorable crush margins and declining soybean prices. Despite the surge, Chinese traders have diversified their suppliers and are preparing for possible disruptions due to potential trade wars. US soybean sales remain strong but may face challenges from oversupply and weak margins.

Soybean Harvest Disrupted in Mato Grosso
Rainfall is impacting soybean harvest in Mato Grosso, Brazil’s largest soybean-producing state. According to AgRural, the harvest pace is the slowest in seven years, although the state’s soybean potential remains excellent with no quality issues reported. However, the delay could impact the second corn crop planting window, a concern for Brazil’s corn producers. Meanwhile, southern Brazil continues to experience hot temperatures and a lack of rainfall, affecting soybean crops.

US Export Sales Exceed Expectations
US export sales were strong last week. The USDA reported that 1.4mmt (57 million bushels) of corn were inspected for export, up 64% from the previous week and 51% higher than the same week last year. Soybean shipments also increased to 1.4mmt (50 million bushels), up 4.2% from the prior week and 5.5% from last year. Wheat shipments were reported at 288,895mt (11 million bushels), though slightly lower than the previous week. Additionally, US exporters sold 198,000mt (7 million bushels) of soybeans to China for delivery in the 2024/2025 marketing year.

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🌽 Corn Futures Surge Following USDA’s Bullish Report 📊
Corn futures rallied sharply on Friday, with the nearby Mar25 contract gaining more than 14 cents per bushel and posting its best trade since June 20th 📈. The USDA reduced its estimate of the 2024 US corn crop by a whopping 267 million bushels, and USDA’s estimate of last year's national corn yield was cut by 3.8 bushels per acre, marking the largest Nov to Jan cut on record. As a result, 2024/2025 US corn ending stocks were revised down to 1.54 billion bushels from 1.738 billion previously 📉. See the ending stocks to use ratio charts below.

🌱 Soybean Futures Follow Corn’s Lead 📈
Soybean futures also rallied on Friday, with the Mar25 contract gaining over 26 cents per bushel, marking its best trade in nearly two months 📅. The USDA reduced its estimate of the 2024 US soybean crop by 95 million bushels. The USDA’s estimate of last year's US national soybean yield was cut by 1 bushel per acre, the largest Nov to Jan cut on record. Additionally, 2024/2025 US soybean ending stocks were lowered to 380 million bushels from 470 million previously 🌾.

🛢️ Crude Oil Prices Surge Following U.S. Sanctions 🇷🇺
Crude oil prices surged on Friday, with WTI crude rising 3.6% to settle at $76.57 per barrel, its highest level since October 🔝. The increase was driven by U.S. sanctions targeting Russian oil companies and more than 180 tankers, along with Russian energy officials and executives. These sanctions are expected to push Indian and Chinese refiners to turn to the Middle East for additional oil supplies 🌍.

📊 US Export Sales Underperform 📉
US export sales were disappointing last week. Net corn sales dropped to a marketing year low of 445,000mt (18 million bushels), down 43% from the previous week and 61% from the prior 4-week average 📉. Net soybean sales also fell to a marketing year low, with a total of 288,700mt (11 million bushels), down 40% from the previous week and 72% from the 4-week average 🚫. Net wheat sales also hit a marketing year low, coming in at 111,300mt (4 million bushels), down 21% from the prior week and 70% from the prior 4-week average 📊. See charts below.

🍳 Biden Administration Releases 45Z Tax Credit Guidance 🍴
The Biden administration released updated 45Z tax credit guidance on Friday 📝. The guidance prohibits the use of used cooking oil imports for biofuel production from qualifying for the tax credit under the GREET model. This led March soybean oil futures to jump 7%, reaching their highest level since June 2023. The updated guidance comes after a surge in cheaper used cooking oil imports from China, which had undercut domestic soybean oil prices 💸. While providing clarity, many US biofuel and agricultural groups criticized the guidance for lacking sufficient details on qualifying criteria 🌿.

🌍 Brazil’s Soybean Crop: Conflicting Projections 🌾
Brazil’s soybean crop projections remain in flux 📉. On Friday, Patria Agronegocios revised its estimate downward to 167.9mmt, a reduction from its earlier forecast of 170.4mmt. This revision was due to unfavorable weather impacting crop yields in some regions 🌧️. On the other hand, Safras and Mercado raised its forecast to 173.7mmt, an increase from 171.8mmt. Despite concerns about weather, Mato Grosso is expected to offset some production losses.

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🌱 Biden Administration to Release 45Z Tax Credit Guidance Today 💼

The Biden administration plans to release short-term 45Z tax credit guidance today 📆. However, the Trump administration will make the final ruling on the tax credit once he takes office 🏛️. The credit was set to become effective on January 1, but the lack of guidance from the US Treasury has threatened the program’s activation 🛑. Biden's administration believes companies can follow the interim guidance, but any final rule will depend on Trump's decisions 💰. Wintry weather in Washington, DC, and the funeral of former President Jimmy Carter may delay the guidance release ⏳.

📊 USDA Monthly Crop Production & WASDE Report Today 📅

USDA will release its monthly Crop Production and WASDE report today at 11am CST 🗓️. The quarterly Grain Stocks report will be released alongside the monthly report 📉. Analysts expect a small reduction in the size of the 2024 US corn and soybean crops 🌽🌱. If realized, this could lead to reduced carryout projections. US corn stocks as of December 1st are expected to be down less than 1% from last year, while soybean stocks are projected to be up 8% and wheat stocks up 10% 🌾. Stay tuned for key updates from the USDA report 📊.

🌧️ Argentina’s Crops Need Moisture ☀️

Argentina's corn and soybean crops are experiencing stress due to hot and dry weather 🌞. According to the Buenos Aires Grains Exchange, rainfall is expected to arrive next week 🌧️, with 2 to 3 inches of rain forecasted for January 16-22 ⏳. About 92% of both soybean and corn crops have been planted, and the much-needed rain will help the crops through their critical stages 🌱. The wheat harvest in Argentina is nearly complete, with an estimated production of 18.6 million metric tons (mmt) 🌾.

🌍 La Niña Officially Arrives 🌦️

La Niña has officially formed in the tropical Pacific Ocean 🌊, though later and weaker than expected. This weather pattern is usually associated with drier conditions across the southern and western US as well as South America 🌎. La Niña increases the risk of drought in agricultural regions of Argentina and Brazil 🌾. However, the weakness of the pattern suggests the impacts may not be as severe this time ⚖️. La Niña is expected to persist through April, with a 60% chance it will fade between March and May, shifting to ENSO-neutral 🌐.

🌧️ Winter Storm Brings Relief to Drought-Stricken Areas 🌀

The USDA weekly drought monitor reported improvements in drought conditions following a winter storm that moved across the Corn Belt last week ❄️. The storm brought much-needed precipitation to areas like eastern Ohio, northern Indiana, northeast Missouri, and northern and eastern Illinois 🌧️. Significant snowfall also helped improve drought conditions in northeast Kansas 🌨️. Despite these improvements, drought remains a concern in several areas, including corn, soybeans, and spring wheat production 🌽🌾. 

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0:00 National Emergency and Tariffs
2:57 USDA Preview
6:45 Argentina Rains Expected
8:01 Brazil Update
9:33 Ethanol Production is Strong
10:31 Flash Sale

📈 US Dollar and Bond Yields Rise Amid Economic Concerns 💵
The US dollar and bond yields continued their upward trend on Wednesday 📈. The 10-year US Treasury note yield rose to 4.73%, its highest level since April, while the dollar index increased 0.28% to 109.00, slightly below last week's two-year high of 109.54 📊. The rise in the dollar and yields followed a CNN report suggesting that Donald Trump might declare a national economic emergency to push forward his broad tariff policies.

🌾 USDA's Crop Report and Grain Stocks Release on Friday 📅
The USDA will release its monthly Crop Production and WASDE reports on Friday 📊. Analysts expect a small reduction in the size of the 2024 US corn and soybean crops, which could lead to reduced carryout projections if realized 🌽🌱. US corn stocks as of December 1st are expected to be down less than 1% year-on-year, while soybean stocks are forecast to be up about 8% and wheat stocks up about 10% 🌾. 

🌧️ Argentina Forecasted to Receive Rainfall 🌦️
Argentina is expected to receive substantial rainfall over the next couple of weeks 🌧️. The Buenos Aires Grains Exchange predicts that Argentina's key farming region will receive 2 to 3 inches of rain in mid-January 🌧️. This comes after dry conditions linked to La Niña have begun to impact crops. Water reserves in major farming areas have been at critical levels following below-normal rainfall in December. The forecasted rainfall will help crops reach February, when rainfall typically resumes 🌱.

🌞 Dry Conditions Affecting Soybean Crops in Brazil 🇧🇷
Dry conditions are starting to impact soybean crops in southern Brazil 🌞. Parts of Rio Grande do Sul, Brazil's southernmost state, have gone 15 to 20 days without significant rainfall 🌾. The state's northwestern region is expected to remain dry for another 12 to 15 days, though the situation is not yet critical 🚨. Meteorologists expect more consistent rainfall by late January, with frequent rains continuing through February, which could improve the crop situation 🌧️. Meanwhile, Central Brazil is forecast to receive heavy rainfall, which may interfere with the early soybean harvest 🌱.

⛽ US Ethanol Production Declines Slightly 📉
US ethanol production decreased last week for the first time in a month 📉. Weekly output dropped by 1% to 1.1 million barrels per day, though it was still 5.1% higher compared to the same week last year 🌽. Ethanol stocks increased by 2.2% compared to the prior week and were up 2.4% from the same week in 2023 📊. Meanwhile, implied gasoline demand was up 3.8% from the previous week but down 5.9% from the same week last year 🚗. Over the last four weeks, implied US gasoline demand is down slightly compared to last year 📉.

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0:00 Re-Inflation and Grain Prices
4:15 Argentina
7:46 Farmer Sentiment
9:29 Ethanol Exports Spike
11:12 Ag Startup Valuation
12:11 Corn Flash

Stock Market Tumbles Amid Inflation Concerns
The stock market took a hit on Tuesday with the Dow Jones dropping 0.4%, the S&P 500 declining 1.1%, and the Nasdaq falling 1.9%. The continued resilience of the economy has pushed back expectations for when the Federal Reserve will begin cutting interest rates this year. Additionally, concerns are rising that President-elect Donald Trump's tariff plans could lead to inflationary pressures.

USDA Optimistic About Argentina’s Soybean Crop
USDA's Argentina office is maintaining a positive outlook for the country’s soybean crop. The crop forecast remains steady at 52 million metric tons (mmt), with an increase in soybean acres and ideal growing conditions contributing to this stable projection. La Niña conditions may pose a risk to yields, but record-high soybean crush of 42 mmt is expected, driven by strong exports and consistent crush rates. 

US Farmer Sentiment Declines Slightly in December
US farmer sentiment dropped slightly in December, with the Purdue CME Group Ag Economy Barometer Index falling to 136, a 9-point decline from November. Despite this, the index remains at its highest level since August 2021. The slight dip is attributed to farmers' concerns about farm conditions and the agriculture industry, but they remain optimistic about the future, particularly after the presidential election. The potential for a trade war under Trump's administration is a rising concern, with 48% of farmers now believing a trade war is either likely or very likely, up from 42% in November.

US Ethanol Exports Surge in November
US ethanol exports saw a major boost in November, climbing to 187.6 million gallons, a 31% increase from October. 2024 exports are on track to surpass 1.9 billion gallons, which would represent 12% of US ethanol production and set a new record. The surge is largely driven by strong growth in key markets like Canada, India, and the European Union. While exports of dried distillers grains fell 15% in November, they were still 14% higher than the same time last year.

Inari Agriculture’s Valuation Soars
Inari Agriculture, an agtech startup, has seen its valuation skyrocket in 2024. The company raised $144 million in new funding, increasing its valuation by 32% to $2.17 billion. Inari develops wheat, corn, and soybeans that require less fertilizer, water, and land, providing sustainable solutions for farmers. The additional funding will help Inari expand its innovative solutions and strengthen its position in the agriculture tech space.

USDA Reports Flash Sale of Corn
The USDA reported a flash sale of 110,000 metric tons (4 million bushels) of corn to Colombia for delivery during the 2024/2025 marketing year.

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0:00 Analysts are Bearish Soybeans
2:56 Trump Tariff Talk
4:25 The Funds
7:41 South American Weather
9:34 Grain Shipments
10:38 Bird Flu

Analysts Warn Soybeans Could Fall Below $9 Amid US/China Trade Tensions
Rabobank analysts warn that soybean prices could drop below $9 per bushel if a new US/China trade war erupts. They believe that China would retaliate with its own tariffs on US grains and oilseeds if President-elect Donald Trump proceeds with his aggressive tariff plan. This could give Brazil an even stronger position in the Chinese market, as they would likely benefit from reduced US soybean exports. 

Trump Denies Softening Stance on Tariffs
President-elect Trump denied claims that he might adopt a softer approach to tariffs. On Monday, Trump dismissed a Washington Post article suggesting that his tariff plan might focus only on sectors critical to national security. This would have been a significant shift from the tariffs he promised during his presidential campaign.

Funds Increase Net-Long Position in Corn
The Funds have substantially increased their net-long position in corn futures. According to CFTC’s weekly Commitment of Traders data, as of Tuesday, December 31, large money managers were net buyers of 58,000 corn contracts. Funds were also net buyers of 29,000 soybean contracts and 12,000 SRW wheat contracts during the week.

Weather Relief for Brazil and Argentina
Extended weather forecasts provide some relief for portions of southern Brazil and northern Argentina, which have been experiencing dry conditions. Both the Euro and GFS models agree that these regions will remain mostly dry through the next 10 days. However, rain chances are expected to return during the 10-16 day period, with some normal rainfall possible between 15-28 days. This has impacted soybean meal futures, which closed lower on Monday and continued trading lower early this morning.

US Export Shipments in Line with Expectations
US corn shipments were in line with expectations last week, with 847,463 metric tons (33 million bushels) inspected for export. However, this was 6.6% lower compared to the previous week and 22% below the same week last year. Soybean shipments came in at 1.3 million metric tons (47 million bushels), down 22% from the prior week but up 23% compared to last year. Wheat shipments exceeded expectations at 412,342 metric tons (15 million bushels), up 22% from the previous week but down 18% from last year.

First US Human Fatality from Bird Flu Confirmed
The US has confirmed its first human fatality from bird flu, a case involving an individual with underlying health conditions over the age of 65 in Louisiana. There have been 61 human bird flu cases nationwide. The majority of cases have occurred among farmworkers in California and Washington who had contact with infected poultry or dairy cows.

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🌞 Argentina's Hot and Dry Weather Impacting Crops 🌱
Hot and dry conditions in Argentina are starting to take a toll on the corn and soybean crops 🌾. While both crops experienced ideal growing conditions during spring thanks to abundant rainfall, high temperatures and reduced rainfall at the end of December are now affecting their development ☀️. The Rosario Grains Exchange reported that some areas received only 30% of their average rainfall in December 🌧️. Despite these challenges, the Buenos Aires Grains Exchange stated that the crops are still progressing well due to moisture earlier in 2024. However, Argentina is expected to remain hot and dry over the next two weeks, which could further stress crops 🌞.

🇨🇳 China Adds US Companies to Export Control List 🔒
China has added 28 US companies to its export control list, preventing them from exporting dual-use items (products that can be used for both civilian and military purposes) to China 📉. The exact enforcement details and which products will be classified as dual-use remain unclear 🔍. Additionally, China imposed sanctions on 10 defense firms related to military sales to Taiwan 🇹🇼. These sanctions are expected to have little impact as US military companies do not sell arms or related goods to China 💡. These actions are seen as a response to the anticipated tougher US policies against China under President-elect Donald Trump 🤔.

💵 US Dollar Index Hits Two-Year High 📈
The US dollar index reached its highest level in over two years last week, rising 0.8% against a basket of currencies as the new trading year began 📊. The strength in the dollar is attributed to investor optimism about Donald Trump’s return to the White House, as they expect lower taxes and deregulation to boost economic growth, consumer spending, and business investment 💰. However, analysts caution that the US dollar could face a correction, with only two quarter-point rate cuts expected this year and the potential for negative US economic data 📉.

📉 US Export Sales Disappoint in Latest Report 🌽
US export sales were underwhelming last week, with net corn sales falling below expectations at 777,000 metric tons (31 million bushels) 🌽, a 55% decrease compared to the previous week and 44% below the 4-week average 📊. Mexico was the largest corn buyer for the week 🇲🇽. Net soybean sales also fell short of expectations, declining to a marketing year low of 484,700 metric tons (18 million bushels) 🌱, a 51% drop from the previous week and 67% lower than the 4-week average 📉. China was the largest soybean buyer 🇨🇳. Net wheat sales also missed expectations, coming in at 140,600 metric tons (5 million bushels) 🌾, down 77% from the previous week and 68% from the 4-week average 📉.

⚡ US Renewable Diesel and Biofuel Production Up in October 🔋
US renewable diesel and biofuel production increased in October, with renewable diesel producers using 77% of their capacity, the highest since July 🌱. Biodiesel producers utilized 89% of their capacity, marking the highest level since June 2023 🔋. The increase in production is attributed to improved margins, which were boosted by higher tax credit values and stronger demand 🚗.