Your Pro Farmer newsletter (December 17, 2022) is now available

Chinese buyers have ramped up purchases of U.S. soybeans, but they have also booked Brazilian supplies for first-quarter 2023 delivery. While Argentina is experiencing problems with drought, Brazil is on pace to produce a record soybean crop. The extended forecast for the U.S. continues to call for increased chances of below-normal precip across most of HRW wheat areas during the January through March period. But SRW areas are likely to see drought conditions improve with above-normal winter precip. On the economic front, the Federal Reserve raised interest rates by 50 basis points, ending a four-meeting string of 75-basis-point hikes. While the rate of monetary tightening has slowed, Chair Jerome Powell indicated the central bank will continue to actively battle inflation and new economic projections signal Fed officials project rates moving higher than previously anticipated. The European Central Bank of Bank of England followed the Fed’s lead with 50-basis point increases to their interest rates. China kept its rates unchanged for a fourth consecutive month and is trying to stimulate its weakening economy. We cover these items and much more in this week’s newsletter, which you can download here.