Grain Markets and Other Stuff

Soybeans Spiral, Healthcare Premiums to Wreck Farmer Finances

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Futures and options trading involves risk of loss and is not suitable for everyone.

🏥 ACA Health Insurance & Farmers
Enhanced premium tax credits under the Affordable Care Act are scheduled to expire in 2026, which could lead to huge increases in health insurance premiums.
Farmers, ranchers, and other self-employed individuals are especially exposed since they don’t have employer-sponsored coverage.
Some families could see premiums jump by more than $20,000 per year. Affordable ACA plans have played a key role in supporting rural economies. Without them, more families may be forced into off-farm work, and rural hospitals could feel added financial strain.
As an alternative, 13 state Farm Bureaus now offer non-ACA-compliant health plans that are significantly cheaper. This issue impacts nearly every business owner and self-employed worker—and could weigh on the broader economy as disposable income shrinks.

🌱 Grain Markets
Soybean futures continued lower on Tuesday. The Jan26 contract fell 9 cents, settling near $10.63, as traders unwound long positions amid weak US export demand and expectations for a massive Brazilian crop.
Corn and wheat also finished lower. Despite solid export demand, Mar26 corn slipped about 3 cents to close near $4.37.
Chicago wheat was pressured by ample global supplies, with March futures down roughly 11 cents near $5.10.

🇨🇳 China & Soybeans
China’s state stockpiler Sinograin auctioned roughly 323,000mt of imported soybeans, about 63% of the total offered, to make room for incoming US supplies.
Another auction later this week will offer 550,000mt, and traders expect around 4mmt to be sold in this auction cycle.
The move comes despite ample domestic inventories, as Beijing has pledged to increase purchases of US soybeans.

👷 US Labor Market
The labor market remains sluggish. Nonfarm payrolls rose by 64,000 in November, following a sharp 105,000 decline in October, the largest drop since 2020.
Much of the weakness was tied to falling federal employment during the shutdown.
The unemployment rate climbed to 4.6%, the highest since 2021, reflecting softer hiring and higher labor force participation.
Part-time employment for economic reasons and long-term unemployment also increased.

🛢️ Oil & Energy
Oil prices tumbled Tuesday. WTI crude fell 2.7% to $55.27, the lowest level since February 2021.
The drop was driven by ample global supplies, rising OPEC+ production, strong US output, and growing optimism around a potential Russia-Ukraine peace agreement.
Lower crude prices have pushed US gasoline prices below $3 per gallon, the cheapest level in nearly five years.