Provided by Stewart-Peterson Inc.
CORN
- Mar corn down 2 @ 6.52
- The market is concerned about demand, especially on the corn export side
- Ukraine corn prices are lower than the US and that offers resistance
- Chinese March corn prices posted their 8th consecutive gain and are around the equivalent of $10.62 per bushel
- US March corn is well below the 100-day moving average of 6.72
- Next week’s USDA report could show reduced corn demand
SOYBEANS
- Mar soybeans down 8 @ 14.76
- March soybean meal remains near the contract high
- The 8-15 day forecast for Argentina is showing some rains (though it is still too dry)
- Chinese demand is still a concern, especially with their rising Covid cases
- Lower soybean prices are incentivizing to crushers
- Brazil’s soybean crop could be record large at 5.58 bb and conditions there are mostly favorable (with the exception of dryness in the south)
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WHEAT
- Mar Chi wheat down 3 @ 7.43, Mar KC down 4 @ 8.37, & Mar MNPLS up 3 @ 9.06
- With the recent selloff, US soft wheat is becoming more competitive with Europe, but still higher priced than Russia
- If La Nina diminishes, it could help US winter wheat areas down the road
- US southern plains still remain dry
- Outside market concerns over recession have added pressure
CATTLE
- Feb LC down 0.225 @ 157.050 & Jan FC down 1.350 @ 183.875
- Feeder cattle found some footing with the lower corn market yesterday
- No cash business was done yesterday – higher cash anticipated this week
- Feedlots may hold out for higher cash as demand is good
- Choice cuts down 4.05 and select up 1.77
- Cattle slaughter projected at 126K
- CME Feeder Cattle Index for 1/4: down 0.29 @ 180.73
HOGS
- Feb hogs down 1.775 @ 82.300 & Feb pork cutout down 0.825 @ 89.675
- Feb hogs closed at the lowest level since December 15
- Good demand has not been reflected in cash/cutouts
- Lower pork prices should stimulate consumer demand
- National Direct Afternoon Report declined 1.22
- Hog slaughter projected at 490K
- CME Lean Hog Index for 1/5: down 0.39 @ 79.06
Author
Brandon Doherty