AgMaster Report – 10/31/2025

NOV BEANS                                    

FINALLY! The much ballyhooed US-China Trade Deal that has been bantered about for some time looks to become reality tonight – despite weeks of doubt & negative rhetoric! Already, China has bought some small shipments of beans – the first of the season! But the amount China buys from the US is in question – as the mkt has rallied substantially in the past weeks when news of the deal first leaked out! Plus US beans are over South American beans currently! But a deal is certainly really good news for a mkt starved for a continuation of Chinese buying! With harvest well past the half-way point & technical confirmation clearly shown on the above charts, harvest lows are in at the current low historical levels – plus non-China demand for our beans has been strong!

 

DEC CORN

Despite the fact that the US-China trade deal mostly involves beans, Dec corn was the beneficiary of spillover support – rallying to 4 month highs today! Support also surfaced from a reported grain deal with South Korea! Corn exports are already running 50% over last year -as well, ethanol demand is rising due to rallying energy prices – finally the Fed should be lowering interest rates today – the 2^nd drop this year – which will apply downward pressure on the US Dollar! Corn is historically cheap – still the lowest on the global mkt!

 

DEC WHT

Dec Wht was also the welcome beneficiary of spillover support from the US-China trade deal – plus it’s cheap enough on the world mkt to attract demand! As a result, it has an impressive technical formation – gaping higher this week & closing above congestion today at a one-month high!

 

MAR FDR

In mid-Oct, President Trump announced he had “plan” to lower the record-high beef prices – and indeed, the mkt took him to heart as Mar Fdrs have plummeted an amazing $60 since then! It turns out his “plan” mostly involves increasing imports from Arg & Brazil by lowering tariffs & opening the US-Mexican border – previously closed due to screw-worm! But now, the mkt has over done it – becoming extremely oversold & today has rallied sharply! Trump’s plan effectively put a top in the Cat Mkt – but the break in prices should attract some solid demand!

 

DEC HOGS

Dec Hogs have steadily ground lower during Oct – due to down seasonals & lackluster demand – but have remained relatively steady lately while cat prices plummeted! This bullish divergence seems to indicate that they will retake over the upside leadership of the meats – they of course already have an big economic advantage in the supermarket for the cash-strapped consumer!

Questions? Ask Bill Moore today at 312-264-4337