3 Big Things Today, January 24
1. Soybeans Rise on Bullish Technical Buying After Price Falls 20¢
Soybeans rose in overnight trading, heading for the first gain in four sessions, as traders attempt to reestablish long positions.
Futures before today lost almost 20¢ in the past three sessions, giving bullish investors a buying opportunity. Prices had been falling, as rainfall in Argentina subsided, providing growers a window to finish their planting.
It also doesn’t hurt that the value of the dollar is hovering near the lowest level in six weeks, boosting purchasing power for overseas buyers.
Soybean futures for March delivery gained 7¢ to $10.64¾ a bushel overnight on the Chicago Board of Trade. Soy meal futures added $1.90 to $345.40 a short ton, and soy oil rose 0.33¢ to 35.46¢ a pound.
Corn futures rose a penny to $3.70½ a bushel overnight.
Wheat for March delivery added ¼¢ to $4.33½ a bushel in Chicago, while Kansas City futures gained 1¢ to $4.45¾ a bushel.
2. Farm Groups Unhappy With President’s Trade Pact Decision
Several farm groups expressed their displeasure with President Donald Trump’s decision to withdraw from the Trans-Pacific Partnership on Monday.
Trump signed an executive order that withdraws the U.S. from the 12-nation TPP, a promise he’d made during his campaign. The American Farm Bureau Federation (AFBF) has said that the TPP would’ve increased net income for farmers by $4.4 billion by 2030 if left in place.
The American Soybean Association (ASA) said in a statement yesterday that the partnership held “great promise” for soybean growers and that members are “very disappointed” to see the U.S. withdraw. The U.S. is expected to export 2.05 billion bushels of the 4.31 billion it produced last year, according to the Department of Agriculture.
The National Cattlemen’s Beef Association (NCBA) also was disappointed in the decision to exit the partnership, and Trump’s assertion that the U.S. will leave the North American Free Trade Agreement (NAFTA).
“TPP and NAFTA have long been convenient political punching bags, but the reality is that foreign trade has been one of the greatest success stories in the long history of the U.S. beef industry,” the NCBA said in a statement. “Sparking a trade war with Canada, Mexico, and Asia will only lead to higher prices for American-produced beef in those markets and put our American producers at a much steeper competitive disadvantage.”
For his part, Trump said it’s time to stop “ridiculous” trade deals that have allowed U.S. companies to move offshore. A group of union delegates who were in attendance broke into applause when the executive order ending U.S. participation in the TPP was signed, according to media reports.
“I think you’re going to have a lot of companies come back to our country,” Trump said, according to the reports.
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3. Winter Storm From Wyoming to Great Lakes Will Bring Up To 12 Inches of Snow
A very large storm extending from Wyoming to the Great Lakes is expected to drop freezing rain, snow, and sleet over much of the region today, according to the National Weather Service.
In parts of Nebraska, freezing precipitation will turn to snow this morning, the NWS said. Total accumulations are expected to be as high as a foot, the agency said. Visibility will be reduced and travel is not advised.
Farther east, along the borders of Iowa, Illinois, and Wisconsin, the storm will start today and push through to Wednesday. Total snowfall in the area will be up to 9 inches, but the worst of the storm isn’t expected to hit until after the evening rush hour.
Still, snow will fall at a rate of about an inch an hour, the NWS said.
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