Monday January 27, 2025

  • The grain markets are trading down this morning.
    • Grains retreat on Colombia spat and strong South American rains
  • Flash sale of 139,000mt of corn sold to Mexico for delivery during the 24/25 marketing year. 
  • Colombia and Trump
    • After Colombia refused two military planes with deportees, Trump threatened tariffs on Colombia and the Colombian president threatened tariffs of their own.  Colombia is the third largest destination for US Corn.
    • Colombia’s issue wasn’t the repatriation flights, but the use of military planes and the treatment of the deportees. Eventually a deal was stuck and flights were allowed to continue. The grain markets gapped lower overnight.  But haven’t recovered this morning. This also indicates that the markets are more likely to go lower as tariffs are floated.
  • Corn funds were net buyers of 30k contracts during the week ending last Tuesday. Soybean funds were net buyers 8k contracts, contracts are sitting net long 66k, the largest since September 2023. 
  • After China put a stop to soybean cargoes from Brazil, China will now restrict soybean imports from five Brazilian exporters for two months. 
  • Export Sales
    • Corn and bean exports sales on Friday were within range of expectations, corn sales were at the very upper-end of the estimates, leaving corn 9% ahead of the needed pace. South Korea and Taiwan were the largest buyer. 
    • Bean sales came in, in the mid range of expectations, export bean sales are running 5% ahead of the needed pace. China and Japan were the largest buyers for the week.