AgMaster Report – 02/06/2026

MAR BEANS

This morning President Trump posted on TRUTH SOCIAL that during a phone conversation, China President Xi agreed to purchase 20 mmt of US Beans in 2026! This sent the mkt vertical – rallying over 50 cents in just 30 min to over $11.00 – the highest level since early Dec! While some naysayers pooh-poohed the idea, remember that last Fall China agreed to buy 12 mmt & they delivered as of early Jan 2026! This bombshell helped offset the continued pressure the upcoming record Brazilian Bean Crop has put on the mkt! Some estimates have ranged as high as 182 mmt – however, some of that has been dialed in & the crop has not been “made” yet!

 

MAR CORN

After breaking 30 cents off the bearish Jan WASDE, Mar Beans have recovered nicely due to extraordinary exports! Corn Inspections are running 50% over 2024 – helping to offset the record South American crops expected on top of the US’s record crop last Fall! Also favorable tax credit legislation for clean fuels is pending as well as a recently minted grain deal with India! The large global supplies are getting dialed in but the relentless demand keeps coming!

 

MAR WHT

Mar wht didn’t initially respond to Bean’s explosive 50 cent rally off Trumps post regarding China buying 20 mmt of US beans in 2026! The mkt is burdened by global oversupply & the Winter Kill risks seem to have passed! But the mkt is historically cheap & has a large fund short positon – & that combination coupled with continuing spillover support from rallying beans & corn may be enough to spark a short-covering rally!

 

FEB CAT

After rallying $35 since late Nov, the mkt was entitled to a correction & we’re seeing it! Early this week, tight supplies & technical strength rallied the mkt but cash didn’t follow – and a low-range close yesterday portended a correction which we’re seeing today! However, long-term fundamentals remain strong! The recent Cold Storage Report confirmed beef stocks on a 15-year low & the semi-annual Cattle Inventory Report lower #’s reminded traders that the total cattle population is still at a 75yr low! As well, demand remains stout & should push prices higher thru Feb!

          

FEB HOGS

Much like Feb Cat, Feb Hogs became overbought after an extended rally since late Nov 2025! Yesterdays low range close was a precursor to a correction today – also exacerbated by a lower pork cutout & a higher slaughter! But the recent Cold Storage Report itndicated a multi-year low in pork stocks! That coupled with solid demand in the supermarket with porks natural economic advantage over beef – should lead to higher prices into the Spring!

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