Monday February 5, 2024
Market Loses, South American Weather, Chinese Economy, and the US Job Report
- Soybeans lost all there gain from Tuesday and have touched their lowest since late 2021 on Friday.
- South American seen good rains this past weekend and forecast are wetter as we start the week.
- More and more ships carrying grain with voyage through the Suez Canal diverted to around the Cape of Good Hope last week. Around 7million tonnes as grain per month pass through the canal into the red sea, but this number as lowered significantly as attacks continue. Last week alone, 700,000 tonnes have been re-routed.
- China’s economic outlook remains gloomy with their stock market sinking to a 5 year low. Ahead of their Luncar New Year Holiday that begins this Saturday, China is not expected to be a large buyer of South American soybeans.
- China’s pork market raises economic issues. Chinese’s pork prices have decreased by about a 5th compared to a year ago, though consumer sending is decreasing with a decline in wages.
- The US Job report came out on Friday with much higher than expected numbers, adding 353k jobs in January vs expectations of 180k. These gains have assured the market that we will not see interest rates cut in March.