Provided by Stewart-Peterson Inc.
CORN
- March corn up 3 @ 6.40
- On Friday’s report, the USDA may lower corn exports and raise ending stocks
- Bank CEOs are raising concerns about a recession
- US corn export commitments are below a year ago
- Brazil’s discount to the US for December corn exports is 8% but January is 3%
- Argentina’s corn is 25% planted but temperatures are over 100 degrees with little rain on the forecast
SOYBEANS
- January soybeans up 5 @ 14.60
- January soybean meal hit a new contract high yesterday
- Drought in Argentina remains a concern
- The recent drop in crude oil may be tied to concern about global economies reducing demand
- Recent EPA biofuel mandates were unsupportive to soybean oil
- China has been easing covid restrictions after recent backlash, offering support to soybeans
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WHEAT
- March Chi wheat up 19 @ 7.48, March KC up 11 @ 8.41, & March MNPLS up 9 @ 9.05
- March Chicago wheat yesterday had the lowest close of 2022
- If La Nina makes a shift, by early 2023 there could be increased shower activity in the US southern plains
- Russia continues to offer cheap wheat and US exports continue to be on the low side
- Wheat remains very technically oversold
- Paris milling wheat hit a 9-month low yesterday
CATTLE
- Feb LC down 0.675 @ 152.950 & Jan FC down 0.450 @ 181.350
- Cattle faced heavy selling pressure yesterday and are lower again at midday today
- Boxed beef weakness has been unsupportive (choice cuts are at the lowest level for the year)
- Cash cattle are expected to be no better than steady
- Packers may reduce chain speed because of the boxed beef weakness
- Choice cuts down 0.66 and select down 1.97
- Cattle slaughter projected at 128K
- CME Feeder Cattle Index for 12/6: up 0.39 @ 178.53
HOGS
- Feb hogs up 0.100 @ 87.025 & Feb pork cutout UNCH @ 95.150
- Hogs were sharply lower yesterday – this seemed to be from spillover weakness in other markets
- Slaughter pace remains strong and packers need to fill demand
- China is reducing covid restrictions which may lead to increased demand
- National Direct Afternoon report increased 0.43
- Hog slaughter projected at 492K
- CME Lean Hog Index for 12/7: up 0.15 @ 82.94
Author
Brandon Doherty