Tidbits
The U.S. Producer Price Index (PPI) was reported yesterday morning. It is the measure of inflation at the wholesale level. It was slightly higher than expected at 0.4% for the month of November. Unemployment claims were 21,000 higher than expected at 242,000. The market continues to expect an interest rate cut Wednesday even though the inflation numbers do not justify it. The market has priced in a 98% chance of a 25 basis points cut next week to 4.25-4.50% on the Fed Fund Rate.
As of December 2, 2024, U.S. farmers participating in crop subsidy programs reported "prevented plantings" of 2.69 million acres of corn, 775,000 acres of soybeans and 391,000 acres of wheat, all three unchanged from the previous month. Total planted acreage reported was 89.227 million acres of corn, 86.161 million acres of soybeans, and 49.723 million acres of wheat.
Pro Farmer reported yesterday morning that the U.S. Treasury spokesperson confirmed that they anticipate issuing guidance before the end of the Biden administration, enabling eligible producers to claim the 45Z credit for 2025. There was no definitive timeline or clarity how thorough the eventual rule would be. The market certainly was not impressed.
Barge shipping on the Upper Mississippi River pauses for winter. On December 1, the last barge of the year departed Lock and Dam 2 in Hastings, MN, ending the 2024 navigation season. In 2024, navigation season opened on March 17.