Written Commentary
MACROECONOMICS:
OpenAI, Softbank and Oracle are joining together to create a joint venture called Stargate. 10 data centers for the project are already under construction in Texas. Expectations are that this development will create more than +100K new jobs right away. Up to $500 billion could be spent on this investment. There is alot of work required to get the paperwork, permits, and engineering done; it will take a lot of land and energy to accomplish their goals.
AG FUNDAMENTALS:
China received some Brazilian old crop cargoes that didn’t meet their quality standards during inspection. They have suspended 5 Brazilian export firms. Soybeans are reaching new 2025 highs this morning following the news of China needing to turn away the South American beans. Turns out the Brazilian farmer/commercial elevator needs to improve their storage equipment/practices if they want to sell China beans year round. Export traders in the US are expecting an increase in US soybean exports between now and March. President Trump is tossing around the idea of placing a 10% tariff on all Chinese imports on February 1st. Trump says the tariffs on china are a reaction to the amount of fentanyl flowing in from Canada and Mexico. China’s Manufacturing sector accounts for 30% of the global output and has been the world’s largest for the past 15 consecutive years. Chinese economists have expressed interest in digitizing and increasing automation within their manufacturing sector while simultaneously improving their sustainability through greener tech. Trump understands China’s ability to manufacture and said “America will be a manufacturing nation once again”.
Export & World News
The USDA reported a private export sale of 136K MT of corn to unknown destinations this morning. Jordan bought about 60K MT of hard milling wheat from optional origins. Algeria issued a tender to buy up to 240K MT of animal feed corn and 50K MT of soymeal.
Malaysian palm oil futures were down overnight 52 ringgit, at 4208
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
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