Tidbits, Elections & Markets, US Yields, PMI, Fuel & Fertilizer, Broilers & Ethanol 11/5/26
Tidbits
The victory of the Democrats in the American Congress will bring important changes to agribusiness.
According to Eduardo Vanin of AgrInvest Commodities from Brazil, the scenario may favor corn, ethanol, and soybean oil, but it could also put pressure on soybean meal and crushing margins in Brazil.
Vanin expects China’s state-owned companies will continue to buy American soybeans, while private industries remain focused on Brazilian products. The Chinese government does not pay the tariff taxes to itself, but private soybean crushers must pay the Chinese government the tariff if they import beans from the U.S., but no tariff on soybeans from Brazil. Nothing will change in the soybean trade because of the election.
When it began to look like a strong Democrat showing Tuesday night, the futures on the U.S. stock market indexes traded sharply lower. Democrats want higher taxes, more regulations, more government spending which means more government debt, more money printed, inflation, all of which stifles economic growth. They also want the Ukraine-Russia war to continue forever.
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