Commentary
Soybeans were higher today largely on the disappointing rains in Center-West Brazil in my opinion. January soybeans up 32 cents to $13.36, January meal futures $8.50 higher to $413.20 and January soy oil up 91 points to 51.11 cents. A few crop scouts and forecasters noted in their mid-day forecasts today showed Brazil rains still not enough to avert stress in 1/3 of Belt over next 2 weeks. It is also my belief that Argentina’s political news may have supported the meal market today as well. Argentina’s newly elected President Milei talks about the pain the country will have to go through with his reforms. The risk of a hyperinflationary situation may put all held goods in tighter hands. If the Peso get devalued further and inflation runs away, there is no reason for producers in Argentina to sell an inflation hedge. This situation could put the US in a stronger position and export more meal on the World market. Time will tell.
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