Good morning!
Grains weaker overnight... Corn, soybeans and wheat faced price pressure during the overnight sessions. As of 6:30 a.m. CT, corn futures are trading 1 to 2 cents lower, soybeans are 7 to 8 cents lower and wheat futures are 2 to 4 cents lower. The U.S. dollar index is more than 150 points higher and front-month crude oil futures are anchored near unchanged.
Financial, currency markets focused on South Korea, France... South Korea’s opposition leaders called for impeachment of President Yoon Suk Yeol after he briefly imposed martial law but then reversed his decision. French President Macron is asking French lawmakers to reject a vote of no confidence that would topple his government. The no-confidence vote is scheduled to begin around 9:00 a.m. CT.
Mexico expects resolution on GM corn dispute by mid-December... Mexico expects a decision by Dec. 14 in the U.S. challenge to its ban on GMO corn imports for food use, according to Mexico Economy Minister Marcelo Ebrard. The case, brought under the U.S.-Mexico-Canada Agreement (USMCA), concerns Mexico’s restriction on white corn imports, which it claims to be self-sufficient in producing. The U.S. argues the policy could disrupt trade and potentially affect GMO yellow corn used for feed. Despite the pending ruling, Mexico may choose to maintain its policy even if the panel rules against it. Ebrard described USMCA as the “best deal the region ever had.”
DOE races to finalize clean energy loans amid potential Trump-era cuts... The Department of Energy’s (DOE) Loan Programs Office (LPO) is expediting its loan approvals, fearing significant cuts under the incoming Trump administration. On Monday, it announced up to $7.5 billion for Stellantis to build two EV battery plants in Indiana, following $12 billion in clean energy loans unveiled last week. With $41 billion in loans in progress, most may remain incomplete by Jan. 20, risking delays or cancellations under Trump, who may scale back LPO’s authority, leaving $340 billion potentially redirected toward fossil fuel projects, according to DOE insiders.
Federal judge overturns rule exempting certain GE plants from regulation... A federal judge in California vacated USDA’s 2020 rule that exempted certain genetically engineered (GE) plants from regulation. The approval process for crops engineered with herbicide-resistant traits could be significantly slowed down, as they may now require more thorough regulatory review. GE plants that were previously exempt may now need to undergo more rigorous environmental, health and economic impact assessments. The ruling might reinstate stricter containment measures for GE plant field trials and the status of crops developed using gene-editing techniques may need to be reevaluated.
OECD warns of dangers from trade, debt... The global economy is expected to grow by 3.2% this year and 3.3% in 2025 and 2026 as lower inflation, job growth and interest rate cuts help offset fiscal tightening in some countries, the Organization for Economic Co-operation and Development (OECD) forecasts. However, OECD warned: “There are increasing risks related to rising trade tensions and protectionism, a possible escalation of geopolitical conflicts and challenging fiscal policies in some countries.” OECD expects U.S. economic growth to slow from 2.8% this year to 2.4% in 2025 and 2.1% in 2026. In China, growth is forecast to slow from 4.9% in 2024 to 4.7% in 2025 and 4.4% in 2026, despite monetary and fiscal easing, as consumer spending remains sluggish. In the euro zone, economic growth is forecast to rise from 0.8% this year to 1.3% in 2025 and 1.5% in 2026.
Chinese industry associations say U.S. chips ‘no longer safe’ as tensions mount... Chinese companies should be wary of buying U.S. chips as they are “no longer safe” and buy locally instead, four of the country’s top industry associations said in a rare coordinated response to Washington’s curbs on Chinese chipmakers. The industry association warnings came after the United States on Monday launched its third crackdown in three years on China’s semiconductor industry. The Semiconductor Industry Association, a U.S. trade association representing major chipmakers, said, “Coordinated calls in China to limit procurement of U.S. chips are unhelpful, and any claims that American chips are ‘no longer safe or reliable’ are simply inaccurate.”
Euro zone business activity contracts in November... Business activity in the euro zone slowed in November, with the HCOB euro zone composite purchasing managers index compiled by S&P Global dropping to 48.3 from 50 in October, signaling contraction. The services sector experienced its first output decline since January, while major economies like Germany, France and Italy also registered downturns.
Congress aims to extend gov’t funding with CR deal... House and Senate leaders are working toward a continuing resolution (CR) to prevent a government shutdown and extend funding until late March 2025. House Speaker Mike Johnson (R-La.) expressed optimism that appropriators would finalize fiscal year (FY) 2025 spending bills well before the proposed deadline. The CR, expected to include disaster aid and a one-year farm bill extension, aims for agreement this week, as government funding expires on Dec. 20.
Boozman voices concern over farm bill extension talks... Efforts to secure an extension of the 2018 Farm Bill have intensified, but Senate Ag Committee Ranking Member John Boozman (R-Ark.) expressed concern about the progress. Talks are “not well,” he said, as lawmakers aim to finalize details before key components expire on Dec. 31. Boozman emphasized the need for enhanced risk management tools and crop insurance provisions, though these have yet to be resolved. Meanwhile, outgoing Senate Ag Committee Chair Debbie Stabenow (D-Mich.) is optimistic, asserting, “We’ll have it done.”
Republicans grappling with internal disagreements on extending the 2017 tax cuts... A crowded legislative agenda and differing priorities threaten to delay action on extending 2017 tax cuts until later next year. Efforts to use reconciliation to bypass Democratic support are hindered by debates over the scope of potential bills, clashing with a House push for a 100-day timeline. Incoming Senate Finance Chair Mike Crapo (R-Idaho) confirmed foundational work is underway but not active drafting. Senate Majority Leader John Thune (R-S.D.) aims for an initial reconciliation bill prioritizing border security, defense and energy within 30 days of President-elect Trump’s inauguration, with tax policy relegated to a second package.
FDA, USDA seek input on food date labeling practices to combat waste... FDA and USDA issued a joint Request for Information (RFI) to gather insights on food date labeling, such as “Sell By,” “Use By” and “Best By,” aiming to address consumer confusion and its contribution to food waste. The RFI seeks data on industry practices, consumer perceptions, and the economic and environmental impacts of date labeling. Stakeholders have 60 days to comment, helping shape future policies or educational campaigns.
E. coli outbreak linked to onions at McDonald’s concludes... FDA, CDC and state agencies investigated a multi-state outbreak of E. coli infections tied to yellow onions distributed by Taylor Farms and served at McDonald’s. A total of 104 cases across 14 states were reported, with 99% of interviewed patients having eaten at McDonald’s. Although the specific outbreak strain was not found in onion or environmental samples, epidemiologic and traceback evidence pointed to recalled yellow onions as the source. Taylor Farms voluntarily recalled the onions on Oct. 22. McDonald’s has since removed the recalled onions and CDC considers the outbreak resolved.
Wholesale beef prices drop but movement increases... Wholesale beef prices dropped $2.18 to $310.83 for Choice and $1.67 to $275.33 for Select on Tuesday. Spot movement jumped to 154 loads amid the sharp price declines, signaling strong underlying retailer demand as they acquire supplies for year-end holiday features.
Cash hog index, pork cutout decline... The CME lean hog index is down another 30 cents to $84.06 as of Dec. 2. The index has declined each day but one since Nov. 6 but remains 22 cents above the October low. The pork cutout fell $3.05 on Tuesday to $89.61, pressured mostly by a $14.59 plunge in primal belly prices, though hams, ribs and butts were also lower.
Overnight demand news... Thailand tendered to buy 120,000 MT of optional origin feed wheat. Jordan tendered to buy up to 120,000 MT of optional origin milling wheat. Turkey made no sales in its tender to sell 100,000 MT of durum wheat.
See ‘Policy Updates’ for late-breaking morning news updates... For updates to items in “First Thing Today” or any late-breaking morning news stories, check “Policy Updates” on www.profarmer.com.
Today’s reports
- 9:30 a.m. Weekly Ethanol Production — EIA
- 2:00 p.m. Broiler Hatchery — NASS
- 2:00 p.m. Dairy Products — NASS