DONE DEAL: 10 Billion Dollar Christmas Present for US Farmers

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0:00 18k Subs!
0:50 Shutdown Avoided + Direct Payments
4:24 Argentina is Dry
6:30 Biofuels at Risk?
8:00 US/Mexico Corn Dispute
9:20 The Funds
10:05 Cattle on Feed
US Government Shutdown Avoided with New Stopgap Spending Bill
A US government shutdown was avoided over the weekend when President Joe Biden signed a stopgap spending bill that will fund the government through mid-March. The bill includes a one-year extension of the 2018 farm bill and $10 billion in economic aid for US farmers. However, a provision allowing the nationwide, year-round sale of E15 fuel was excluded.
Direct Farm Payments Set to Arrive in 90 Days
The $10 billion in direct payments to US farmers is now a "done deal," with payments set to be distributed within 90 days. The payments will be allocated by crop. The payments are part of the stopgap bill, which also includes significant support for the farming community.
Argentina's Forecast: Dry Conditions for Soybean Areas
Argentina’s soybean areas are expected to receive less than half of their normal rainfall over the next two weeks. Although the forecast is slightly wetter than before, the overall trend remains dry. Temperatures are expected to run above normal, further stressing crops. While Argentina is projected to account for just 12% of global soybean production, it is expected to make up 37% of soybean meal exports.
Trump Plans to Repeal the Inflation Reduction Act
President-elect Donald Trump is planning to repeal the Inflation Reduction Act (IRA), which was passed by the Biden administration in August 2022. The repeal of the IRA could also risk the loss of 45Z tax credits, which support farming practices that reduce emissions and improve soil carbon. Repealing the IRA would likely require Congressional action, and its rollback could impact the clean energy sector.
US Prevails in GMO Corn Trade Dispute with Mexico
The US won a trade dispute with Mexico over its ban of US genetically modified (GMO) corn. A trade panel ruled that Mexico’s ban violated the USMCA trade agreement and was not scientifically based. The ban had previously applied to GMO corn for human consumption, but US producers were concerned that it might be extended to GMO corn used for animal feed.
Funds Reduce Net-Long Position in Corn
Funds reduced their net-long position in corn last week, with large money managers reported as net sellers of 8,000 corn contracts. Soybean and SRW wheat contracts also saw net selling.
USDA’s COF Report
The USDA’s Cattle on Feed report shows that the number of cattle on feed as of December 1 was 12 million head. Placements in November were reported at 96% of year-ago levels. Marketings last month came in at 99% of year-ago levels.