CORN
- March up 7 @ 5.16 & Dec down 8 @ 4.40
- Weekly export sales of 1.437M mt – unchanged from last week
- Argentine farmers have ramped up selling of corn ahead of possible export tax increase
- Weather in Argentina has improved – crop rated 28% good/excellent versus 19% last wk
- Demand stays strong yesterday’s daily export sale likely went to China
- Funds have liquidated some of their longs – still expected to be long 350K contracts
- Ethanol production for the week average 945K barrels per day – down 9.91% from last yr
SOYBEANS
- March down 20 @ 13.50 & Nov down 24 @ 11.44
- Daily export sales announced 136K mt for delivery to China
- Weekly export sales of 1.817M mt – up 50% from last week
- Soybean meal headed lower and pulling on soybean futures
- Rains have improved Brazilian crop to 21% good/excellent versus 10% last week
- US soybean carryout is likely headed to 100 mb or less
- Funds have liquidated some of their longs – still expected to be long 267K contracts
WHEAT
- March down 15 @ 6.45, KC Mar down 11 @ 6.24, & Mar MNPLS down 14 @ 6.30
- Weekly export sales of 329.6K mt – up 49% from last week
- Paris milling futures are down for the 3rd day in a row, pulling on US prices
- Corn & soybeans under pressure – bleeding into wheat market
- US prices more competitive after this week’s drop
- Russian ag agency increased 2021’s crop est. to 77.7 mmt from 76.8mmt in Dec
- Expanding and widespread drought still affecting 95% of the US plains
CATTLE
- Feb LC up 1.77 @ 115.87 & Jan FC up 1.52 @ 137.40
- Weekly export sales of 24,500 MT – increases were primarily for Japan
- Cattle on Feed Report due today at 2:00 p.m. – expected to be friendly
- Trade leery of higher grain prices affecting heavy weight cattle
- Today’s slaughter est. at 118K head
- Cash trade around 110 for LC & @ 133.19, up .38 for 1/20 for FC cash index
- O/I: -2235 contracts for Feb LC & O/I: -310 contracts for Jan FC
HOGS
- February Hogs up 1.12 @ 69.22 & Feb Pork Cutouts up 1.47 @ 80.35
- Weekly export sales of 45,200 MT – increases primarily for Mexico
- Bullish technical moves; pork values/demand firm
- News cases of African swine fever in China hog for first time in 3 months
- Hog slaughter estimated at 489K, Saturday runs are projected at 324K head
- Cash lean index @ 65.40 down .27 for 1/20
- O/I: –1527 positions for hogs & pork cutout futures +104 positions
Author
Amberlee Bratcher