The EUR/USD currency pair declined to 1.0500, while the price of US WTI light crude oil rose to $70.29 per barrel.

OPEC has reduced its forecasts for oil demand growth for this year and the next for the fifth consecutive month, announcing its deepest cut to 2024 projections so far after agreeing to extend production restrictions. According to its monthly report, OPEC lowered its 2024 demand growth forecast by 210,000 barrels per day to 1.6 million barrels per day. Since July, the cartel has slashed its outlook by 27%, reflecting a delayed acknowledgment of the worsening market conditions. Despite multiple downward revisions, OPEC's forecasts remain significantly higher than most other projections in the oil industry and contradict actual consumption data for this year. OPEC projects that average oil consumption this year will be 103.82 million barrels per day. It also reduced its growth expectations for 2025 by 90,000 barrels per day, now estimating an increase of 1.4 million barrels per day.

Yesterday, March wheat futures in Chicago increased by 1 1/2 cents to $5.63 1/4 per bushel. Wheat futures increased in both Chicago and Paris. For the week ending December 5, 2024, U.S. wheat export sales are expected to range between 275,000–600,000 tons for the current crop and 0–50,000 tons for the next crop. Rainfall is expected in the US Wheat Belt over the next few days, followed by warm and dry weather. Thailand purchased 650,000 tons of feed wheat with delivery in March 2025. Japan is seeking to buy 65,000 tons of feed wheat and 30,000 tons of feed barley, while Jordan is looking to purchase 120,000 tons of milling wheat. Rainfall continues in eastern Australia.

Yesterday, Chicago March corn futures fell by 3/4 cent to $4.48 1/4 per bushel. Corn futures decreased in Chicago but rose in Paris. During the week ending December 6, 2024, U.S. ethanol production reached 1.078 million barrels per day, up by 5,000 barrels compared to the previous week. Ethanol stocks declined by 335,000 barrels for the week, down to 22.648 million barrels. U.S. ethanol exports totaled 123,000 barrels per day (-3,000), while refinery consumption increased to 883,000 barrels per day (+10,000). Weekly U.S. corn export sales are expected to range from 1.1–1.9 million tons of the old crop and 0–100,000 tons of the new crop. In its December report, the USDA made a significant reduction to US corn ending stocks for the season by 5 million tons. Jordan purchased 75,000 tons of feed barley.

Yesterday, CBOT January soybean futures rose by 3/4 cent to $9.95 1/2 per bushel. Soybean futures fell in Chicago, while soymeal and soyoil futures increased. Rapeseed futures declined in Paris, but canola futures rose in Canada. Weekly U.S. soybean export sales are expected to range from 1.5–2.2 million tons. Today, Conab is set to release its forecasts for Brazil’s soybean production. According to ICAR, Russia’s oilseed acreage is projected to increase to 19 million hectares in 2025 from 18 million hectares in 2024, which is considered a significant rise. South Korea announced a tender to purchase 50,000 tons of non-GMO soybeans with delivery in January–February.

The World Meteorological Organization predicts a 55% likelihood of a La Niña event occurring between December 2024 and February 2025, noting that it is expected to be weak and short-lived. Even if atmospheric cooling occurs, it will not offset the vast amount of greenhouse gases that continue to warm the atmosphere.

Markets remain stable with little new information. Demand for all crops is strong, but supply is currently sufficient.