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🟢 Key Updates on US Markets and Global Trade 💥

US Tariff Tensions: Colombia and Canada Respond
President Donald Trump announced the potential for a 25% tariff on Colombian imports after the country refused to allow US planes carrying deported migrants to land. In response, Colombia retaliated with its own tariffs on US goods. However, the situation calmed when Colombia agreed to accept the deportees. Colombia has already accounted for 9.7% of US corn export sales this year. Similar tariff threats are looming for Mexico and Canada, with 308 million bushels of unshipped corn from Mexico on the line.

Increased Net-Long Positions in Corn & Soybean Markets
CFTC data from January 21 revealed that funds increased their net-long position in corn to 322k contracts, the highest since May 2022. Additionally, funds were net buyers of 73k contracts of soybeans, marking the largest position since November 2023. This bullish sentiment indicates strong demand for US crops, despite global market challenges.

Argentina’s Dry Conditions Impacting Corn & Soybean Yields
Argentina’s crop outlook is being negatively impacted by hot and dry weather. The USDA’s attaché office has lowered its corn forecast to 49 million metric tons (mmt), down from the 51mmt forecast. Corn exports are now expected to total 34mmt, lower than the 36mmt forecasted by USDA. Argentina's soybean crop is also facing yield reduction due to the dry conditions.

China Imposes Temporary Soybean Import Restrictions
China has imposed restrictions on soybean imports from five Brazilian exporters after they failed to meet plant health standards. Although the volume affected is small, the disruption could have broader implications for global soybean trade, particularly in the face of rising tensions with the US. Brazil’s soybean exports to China remain strong, while US soybean sales are being overshadowed.

Wheat Crop Damage from Extreme Cold
The US winter wheat crop is suffering from an Arctic blast, with 15% of the crop potentially killed by bitterly cold temperatures. The Commodity Weather Group forecasts a 6.7% reduction in HRW wheat production and a 3.5% decline in SRW wheat.

US Export Sales Show Strength Despite Global Setbacks
US corn exports surged to 1.7mmt (65 million bushels), marking a 62% increase compared to the previous week. Soybean exports, however, were weaker at 973,145mt (36 million bushels), a 28% drop from the previous week. Wheat exports also disappointed at 164,800mt (6 million bushels), falling far below expectations. 

Global Markets React to Tariff Uncertainty & Economic Moves
US stock markets experienced sharp declines, with the Nasdaq down over 4%, driven by fears surrounding President Trump’s tariffs. The US Dollar weakened, while global equity markets, especially in Japan and Mexico, surged as they benefitted from trade optimism.

Cattle Report Reveals Bullish Trends in Beef Market
The Cattle on Feed Report showed a 1% decline in cattle numbers as of January 1 compared to last year. Placements in December were below expectations, signaling a bullish outlook for the beef market. The lighter placements combined with increased marketings suggest reduced cattle numbers, likely leading to tighter beef supplies.

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🌱🌽 Argentina’s soybean and corn crop forecasts were cut due to hot and dry weather. The Buenos Aires Grains Exchange now predicts the soybean crop will reach 49.6 million metric tons (down 1mmt) and the corn crop 49 million metric tons (also down 1mmt). While some rain is expected in soybean areas soon 🌧️, the intense heat 🌞 will likely limit its benefits.

🇦🇷 To help farmers struggling with drought and low crop prices, Argentina is temporarily reducing export taxes on soybeans, soybean products, corn, and wheat 🌾. The tax cuts, fulfilling a campaign promise by President Javier Milei, will start Monday and run through June. Farmers have been facing a rainfall deficit since December, making these changes critical.

🛢️ Brooke Rollins, President Trump’s nominee for Agriculture Secretary, promised to support all fuel types, including biofuels. During her hearing, she distanced herself from her previous employer, who opposed biofuels, and committed to following Trump’s energy dominance plan. Rollins also plans to work on 45Z tax credit guidance with Treasury Secretary nominee Scott Bessent. Meanwhile, Trump announced plans to declare a national energy emergency, which may allow year-round sales of E15 fuel.

🚜 Rollins also said she might consider direct payments to farmers hurt by tariffs, similar to Trump’s earlier approach. During his first term, the administration spent billions to offset losses from retaliatory tariffs on US soybeans. Some senators criticized this method, saying farmers prefer to sell their products rather than rely on government aid. Rollins also aims to reduce the $42 billion agricultural trade deficit and expand trade markets, though she had no response when asked about the impact of mass deportations on farmworkers.

🍶 US ethanol production increased last week, hitting 1.1 million barrels per day, up 4.3% from the same time last year. Ethanol stocks rose to 25.9 million barrels, a 3.5% increase from the previous week. Gasoline demand, however, dropped by 2.9% compared to the week before.

🌾 The USDA’s latest drought report shows little change in conditions. The Corn Belt saw limited rain, with slight improvements in northern Indiana and Illinois. The High Plains remained dry, and cold air from Canada brought temperatures 12–15°F below normal.

Drought Impact:

• 🌽 Corn: 42%
• 🌱 Soybeans: 35%
• 🌾 Winter Wheat: 23%
• 🌾 Spring Wheat: 45%
• 🐄 Cattle: 33%

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A bipartisan group of senators has reintroduced the Farm to Fly Act to speed up the production of SAF. The legislation would clarify SAF eligibility in the USDA's current bioenergy programs and expand markets for crops used in SAF production. It would also clarify the federal definition of SAF for USDA purposes and promote more collaboration on aviation biofuels within the USDA. Six senators from the Midwest reintroduced the bill. Agriculture, aviation, and energy groups have all expressed support for the legislation. The reintroduction came one day after President Donald Trump signed an executive order freezing any new federal rules for 60 days, including the 45Z tax credit guidance.

USDA reported a flash sale of corn on Wednesday. US exporters sold 136,000mt (5mil bushels) of corn to unknown destinations for delivery during the 2024/2025 marketing year. Current marketing year corn sales are the third best in the last ten years.

China has suspended Brazilian soybean shipments from five companies. China's General Administration of Customs halted the shipments after finding pesticides and pests during a routine inspection. Authorities did not release the number of cargoes or the volume of soybeans affected by the suspension. However, the Brazilian Ministry of Agriculture reported that the ban is not expected to affect Brazil's overall soybean exports to China. The ministry is expected to provide China with the necessary information to lift the temporary suspensions. The firms included in the ban are some of the largest soybean suppliers to China.

Weather forecasts for southern Brazil and Argentina have turned slightly wetter. Rains are slated to return to southern Brazil and northern Argentina by Sunday. Southern Brazil, in particular, should see widespread coverage during the next 5 days. The 5-10 day period introduces slightly better rainfall for key Argentina soybean areas. This morning's extended GFS model, however, is again drier for much of Argentina's soybean country. Despite the rain, parts of Argentina, including Buenos Aires, may remain drier than normal.

President Donald Trump is pressuring Russia to negotiate an end to the war with Ukraine. On Wednesday, Trump said that Russia needs to make a deal to end the war, or the US will impose tariffs, higher taxes, and sanctions on Russian imports. The same would apply to other countries providing financial support to Russia. It's unclear which specific Russian goods would be targeted, but Russia's main oil producers could be included. Tariffs, however, won't be overly impactful given that the US only imported about $4.6 billion worth of Russian goods in 2023, accounting for only 0.2% of total imports.

President Donald Trump's nominee for Agriculture Secretary previously opposed ethanol and farm subsidies. Brooke Rollins served as president and CEO of the Texas Public Policy Foundation from 2003 to 2018. During that time, the organization claimed that government support for ethanol led to an increase in emissions and a rise in food and fuel prices. In 2016, while Rollins remained in her position with the nonprofit, the group advocated for the elimination of farm subsidies. Despite Rollins' controversial history on policies affecting farmers, more than 400 state and national agricultural groups endorsed her to lead the USDA.

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0:00 Rumors and China
3:27 Corn/Soybean Acreage Estimates
6:47 China Tariffs on Feb 1st?
8:24 South America Update
10:25 Strong Corn Shipments

🟢 US Corn Market Shows Positive Signs Amid China Rumors & Export Surge 🌽

There were rumors on Tuesday regarding potential Chinese purchases of US corn, following a Monday announcement from the Chinese government indicating plans to increase the scale of corn purchases and expand grain storage. Despite China’s imports of US corn being near zero this year, the possibility of increased demand has positively impacted the corn market, with spot-month corn futures reaching their best levels since October 2023. 📈🌾

📊 S&P Global Adjusts US Corn and Soybean Acreage Estimates 🌱

S&P Global Commodity Insights has increased its forecast for US corn acreage to 93.5 million acres, a 700,000-acre increase from its previous estimate. This is a 2.9 million-acre increase compared to 2024. However, soybean acreage is expected to decrease by 700,000 acres, with the forecast now at 83.3 million acres. This aligns with USDA projections of 82.9 million acres for corn and 86.1 million acres for soybeans. 🌽

🚨 Trump Considers Tariffs on China, Mexico, and Canada 💼

President Donald Trump is weighing a 10% tariff on China as early as February 1, citing China’s role in the fentanyl trade. Trump is also considering a 25% tariff on imports from Mexico and Canada, with the aim of curbing illegal immigration and addressing trade concerns. These potential tariffs come on the heels of earlier proposals for a 60% tariff on Chinese goods. Traders are reacting to these ongoing developments, as tariffs could impact global trade and affect US exports. 💥

🇧🇷 Brazil’s Soybean Crop Outlook Raised 🚜

The Brazilian Association of Vegetable Oil Industries (ABIOVE) has raised its forecast for Brazil’s soybean crop to 171.7 million metric tons (mmt), up from 168.7mmt. Exports are expected to reach 106.1mmt, a 2.6mmt increase from previous estimates. Soybean crush is also expected to slightly rise to 57.1mmt. The US Department of Agriculture (USDA) forecasts Brazil’s crop at 169mmt, while Brazil’s crop agency Conab estimates 166.3mmt. 🌱🌍

📦 US Corn Exports Surpass Expectations 📈

US corn exports exceeded expectations last week, with 1.5mmt (61 million bushels) inspected for export during the week ending January 16. This marked a 6.9% increase compared to the prior week and a 106% increase compared to the same week in 2023. Meanwhile, soybean shipments were disappointing, falling to 973,145mt (36 million bushels), 28% lower than the previous week and 18% lower than last year. Wheat shipments also fell short, down 13% from the prior week. 

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0:00 Argy Rains Disappoint
2:11 Slow Brazil Harvest Start
4:15 Tariff Update
7:41 The Funds
10:06 Soy Exports to China Decline
11:36 Bitcoin and Trump Meme Coin

🌧️ Weather Woes Continue for Argentina and Brazil 🌾
While Argentina and southern Brazil received some rain over the weekend, soybean crops are still struggling with dryness in key areas. Argentina’s central soybean regions received up to 1" of rain, but much of the problem areas remained dry. Forecasts indicate that rainfall will stay scarce in the next 5 days, though better chances are expected later, based on the Euro model.

In Brazil, the soybean harvest is facing its slowest pace in four years, with just 1.7% of the crop harvested as of last week, far behind 6% last year. Excessive rain in Mato Grosso has hindered progress, making this the slowest start to the harvest since the 2010/2011 season. This has also delayed planting for Brazil's second corn crop, with planting at just 0.3%, far below last year's 4.9%.

💼 Trump Delays Immediate Tariff Action 🚨
President Donald Trump has delayed the immediate implementation of tariffs on imports from Canada and Mexico, opting instead for a review of trade policies with China, Canada, and Mexico. The main focus is on ensuring that trade deals such as the USMCA and the Phase One trade deal with China are being adhered to. This delay offers some relief to those concerned about immediate tariff impacts, though Trump is still considering 25% tariffs by February 1st on goods from these countries.

📈 Fund Positioning Shows Optimism in Corn & Soybean Markets 🌽
"The Funds" have significantly increased their net-long positions in corn and soybean markets. For the week ending January 14, large money managers were net buyers of 48k corn contracts, bringing their total long position to 292k contracts, the largest since May 2022. Soybean markets also saw substantial buying, with 73k contracts purchased, making this the largest net long position in soybeans since November 2023. The funds were also net sellers of 5k contracts of SRW wheat, signaling more focus on corn and soybeans.

🇨🇳 US & Brazil Soybean Exports Diverge 📉
US soybean exports to China declined by 5.7% in 2024, reaching 22.1mmt, while Brazilian exports surged by 6.7% to 74.7mmt. As Brazil’s market share in China increased to 71%, the US share dropped to 21%. This shift reflects growing competition between the two countries. Argentina’s soybean exports to China also jumped, more than doubling to 4.1mmt. 🌍

💰 Bitcoin Reaches New Heights Before Inauguration 🪙
Bitcoin surged to a new all-time high, surpassing $109,000 early Monday, as President Donald Trump's administration is expected to create a pro-crypto regulatory environment. This surge in Bitcoin prices was fueled by anticipation of Trump’s potential crypto advisory council and the creation of a national Bitcoin reserve.

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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.