12/29/2024 Sunday Market Preview

Another steady open is expected for grains that could otherwise quickly find buying interest as long no major risk-off moves are sparked right away for the outside financial markets. Worries about recession, high inflation, and higher interest rates were notable at the end of last week. In the Headlines March corn futures finished higher by 7 3/4 cents last week. March beans were up 10 1/2. Chicago wheat gained 13 1/2 while KC wheat rebounded by 9 3/4. February hog futures were down $1.77 last week while February live cattle were up $2.25 and January feeders were up $5.77. Stocks surged higher on Christmas Eve to kick off the Santa Claus rally that is usually expected through the first few days of the New Year. Buying enthusiasm was dampened at the close of last week as rising bond yields spooked investors. Even though the central bank has cut its fed funds rate by one percent since late September, the yield on the 10-year Treasury note has risen by one percent. The divergence signals worry about future recession and concern about the Fed losing control of the long end of the yield curve. U.S. soybean export prices were widening their premium…