CORN
- Mar corn up 3 @ 6.01
- Traders are putting weather premium into the market
- Most meteorologists see little change in the Brazil forecast that has stressed the first corn crop
- GFS weather model forecast is for normal to seven degrees above normal temperatures for the next couple weeks in Argentina
- Strong ethanol demand is helping the corn market
- May corn on China’s Dalian exchange is around the equivalent of $10.74 per bushel
SOYBEANS
- Jan soybeans up 21 @ 13.29
- Soybeans trading over 13.00 could suggest that the market will test 14.00 if weather in South America remains dry
- Omicron virus fears seem to have subsided
- Soybeans have closed higher for several consecutive sessions
- March soybean meal prices are at their highest level in 7 months
- Export sales remain bearish and Chinese soybean purchases from the US are down 29% from last year
WHEAT
- Mar wheat up 11 @ 8.10, Mar KC up 7 @ 8.48, Mar MNPLS up 3 @ 10.28
- Wheat is at 3 week highs
- HRW cash markets are strong
- Dryness in the US southern plains remains a concern
- No moisture expected in the southern plains for the next 10 days
- Stochastics show upward momentum for all three wheat classes
- Some meteorologists are predicting a “polar vortex” in the US in January
CATTLE
- Feb LC unchanged @ 136.925 & Mar FC down 0.475 @ 161.350
- Yesterday’s rally seemed to be technical in nature
- Spillover from strength in stocks and other markets also helped cattle
- Weaker boxed beef may indicate less demand
- Cash trade was lower yesterday
- Cattle On Feed report is due for release on tomorrow afternoon
- Choice cuts down 0.99 and select down 0.75
- Cattle slaughter projected at 120K
- CME Feeder Cattle Index for 12/21: down 0.36 @ 160.34
HOGS
- Feb hogs up 0.775 @ 83.200 & Feb pork cutout up 0.975 @ 93.275
- Traders may anticipate a friendly Hogs and Pigs report (which is due for release tomorrow afternoon)
- Strong cash yesterday may be an indication of aggressive buying during the holidays
- A large supply of market ready hogs remain available to the market
- National Direct Afternoon report increased 2.18
- Hog slaughter projected at 479K
- CME Lean Hog Index for 12/22: up 0.09 @ 73.02