CORN
Corn futures traded mostly steady with Thursday’s closing ranges overnight. March corn had a narrow 3-1/4 cent range between 5.92-1/2 and 5.89-1/4 last night and is down a penny this morning to 5.90-1/4. For the week, the contract is still hovering below $6.00 resistance and is virtually unchanged. Dec 22 corn is down 2 cents this morning to 5.45-1/4. The corn market remains rangebound overall and continues to close in on the $6.00 per bushel level, but hasn’t had enough momentum to break through it. The large purchase from Mexico last week helped this week’s Weekly Export Sales number robust. There are still favorable conditions in Brazil, but soils are starting to dry out in the South. Recent showers benefit developing corn in Argentina. Basis bids for soybeans and corn shipped by barge to the U.S. Gulf Coast and loaded for export firmed on Thursday on solid demand for spot shipments, traders said.
SOYBEANS
Soybean futures are up nickel this morning to 12.82-1/4 in the nearby Jan contract. March is up 4 to 12.83-1/4 and up a dime for the week. Nov 22′ beans are steady at 12.46-1/4. Meal is up $4.30/ton to 3.73 in the March contract while tracking the 50-day Moving Average on the daily chart. March Soyoil is down .44 to 54.29. Despite South American weather concerns popping up in the daily newswires, the majority of Brazil’s soybean crop is rated rather high with the potential for a record crop. This will keep prices from rallying much into the end of the year. Demand is also a question mark moving forward as U.S. supplies exceed Brazil’s export prices into 2022 by nearly $30 per metric ton. Overnight, Chinese bean futures were up 43 yuan; Soymeal up 17; Soyoil up 112; Palm oil up 202; Corn unchanged. Malaysian palm oil prices overnight were up 8 ringgit (+0.18%) at 4408.
WHEAT
Wheat futures are mixed this morning with the March Chicago contract up a penny to 7.71-1/2. For the week, the contract is down about 15 cents after steady selling pressure throughout the week. March KC wheat is up 5 to 8.08-3/4 while tracking its 50-day Moving Average this morning, and up 3 cents for the week. March MPLS wheat is fractionally lower to 10.26, and down a nickel this week. The dollar is lower for the week, helping stabilize wheat’s losses into the weekend. Weekly Export Sales were a marketing year high, but remain about 25% below last year’s pace. Egypt came out this week and said they have enough wheat stockpiles to last 5.1 months. The Iranian state agency the Government Trading Corporation (GTC) is believed to have purchased around 500,000 tons of milling wheat in a tender that closed on Wednesday. Spot basis bids for HRW wheat were firm at rail market locations that ship supplies to the U.S. Gulf, supported by signs of strong export demand.
CATTLE
Cattle futures are called steady to higher. Live cattle pushed higher off early session lows, led by a strong retail market, as prices finished slightly higher on Thursday. This firm close including another reversal to the upside could bring additional buying support this morning. The cash market was disappointing as trade has been light this week in the face of the holiday week next week. Light cash trade was established at $136-138 and northern dress trade at $212. Both were $2 lower than last week. Trade has been light overall this week, and could see some additional clean up trade tomorrow. Choice carcasses closed 2.71 higher to 262.97 and Select was .69 higher to 248.14. The load count was light at 140 loads. Weekly export sales stayed supportive at 17,100 mt, up noticeably from last week, and an additional 5,700 MT for 2022. Japan, South Korea, and China were the top purchasers of U.S. beef last week.
HOGS
Hogs are called mixed to higher for this morning. The cash market is still showing some signs of life. The fundamentals will still be key for a sustained rally. Feb hogs rallied back to the top of the nearby range, but still building a consolidation pattern, resembling a bullish flag, with a series of lower lows and highs. This pattern could break out to challenge resistance over the Feb hogs at the 84.00 levels. Carcass values traded firmer. Pork carcasses gained 3.66 on the close to 91.49 with a load count that was moderate at 327 loads. Weekly export sales were supportive at 31,100 MT, up 58% over last week, and an additional 5,800 MT for 2022. Mexico, Canada, and Japan were the top buyers of pork last week.
Author
Matthew Strelow