Could a "Re-Inflation" Event Boost Grain Prices?? (Corn/Soybeans/Wheat)

Grain Markets and Other Stuff

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0:00 Re-Inflation and Grain Prices
4:15 Argentina
7:46 Farmer Sentiment
9:29 Ethanol Exports Spike
11:12 Ag Startup Valuation
12:11 Corn Flash
Stock Market Tumbles Amid Inflation Concerns
The stock market took a hit on Tuesday with the Dow Jones dropping 0.4%, the S&P 500 declining 1.1%, and the Nasdaq falling 1.9%. The continued resilience of the economy has pushed back expectations for when the Federal Reserve will begin cutting interest rates this year. Additionally, concerns are rising that President-elect Donald Trump's tariff plans could lead to inflationary pressures.
USDA Optimistic About Argentina’s Soybean Crop
USDA's Argentina office is maintaining a positive outlook for the country’s soybean crop. The crop forecast remains steady at 52 million metric tons (mmt), with an increase in soybean acres and ideal growing conditions contributing to this stable projection. La Niña conditions may pose a risk to yields, but record-high soybean crush of 42 mmt is expected, driven by strong exports and consistent crush rates.
US Farmer Sentiment Declines Slightly in December
US farmer sentiment dropped slightly in December, with the Purdue CME Group Ag Economy Barometer Index falling to 136, a 9-point decline from November. Despite this, the index remains at its highest level since August 2021. The slight dip is attributed to farmers' concerns about farm conditions and the agriculture industry, but they remain optimistic about the future, particularly after the presidential election. The potential for a trade war under Trump's administration is a rising concern, with 48% of farmers now believing a trade war is either likely or very likely, up from 42% in November.
US Ethanol Exports Surge in November
US ethanol exports saw a major boost in November, climbing to 187.6 million gallons, a 31% increase from October. 2024 exports are on track to surpass 1.9 billion gallons, which would represent 12% of US ethanol production and set a new record. The surge is largely driven by strong growth in key markets like Canada, India, and the European Union. While exports of dried distillers grains fell 15% in November, they were still 14% higher than the same time last year.
Inari Agriculture’s Valuation Soars
Inari Agriculture, an agtech startup, has seen its valuation skyrocket in 2024. The company raised $144 million in new funding, increasing its valuation by 32% to $2.17 billion. Inari develops wheat, corn, and soybeans that require less fertilizer, water, and land, providing sustainable solutions for farmers. The additional funding will help Inari expand its innovative solutions and strengthen its position in the agriculture tech space.
USDA Reports Flash Sale of Corn
The USDA reported a flash sale of 110,000 metric tons (4 million bushels) of corn to Colombia for delivery during the 2024/2025 marketing year.