CORN
- Mar corn down 7 @ 6.00
- Over the weekend, it was dry across most of Argentina and southern Brazil, but the forecast calls for rains in those areas a week from now
- Talk of 8-10 mmt loss in the South American corn crop
- The second (larger) Brazilian corn crop may fare better than the first
- A 6.96 mb sale of corn to Mexico was announced Friday
- Tomorrow, CONAB will release their new crop projection for Brazil
- Corn carryout expected to decline slightly on Wednesday’s USDA report
SOYBEANS
- March soybeans down 24 @ 13.86
- Talk of 15-20 mmt loss in the South American soybean crop
- Soybean meal rallied to a new contract high last week – helped support soybeans
- A 4.6 mb sale of soybeans to unknown was announced Friday
- Soybean carryout expected to increase slightly on Wednesday’s USDA report (due to poor exports)
WHEAT
- Mar wheat up 4 @ 7.62, Mar KC unchanged @ 7.75, Mar MNPLS down 2 @ 9.21
- Harvest pressure from Australia and Argentina is weighing on the market
- Despite recent weakness, weather in the US southern plains remains dry and is bullish for wheat
- Russia’s wheat export tax is close to $100 per metric ton
- Wheat carryout expected to increase slightly on Wednesday’s USDA report (due to poor exports)
CATTLE
- Feb LC down 0.725 @ 136.600 & Mar FC down 1.025 @ 165.650
- Chart gaps remain above current levels and may need to be filled
- Steady to weaker cash last week did not help the market
- Cash may not be any better this week
- Weights are increasing, likely because of reduced slaughter pace
- Choice cuts up 3.26 and select up 0.46
- Cattle slaughter projected at 114K
- CME Feeder Cattle Index for 1/7: down 0.49 @ 161.79
HOGS
- Feb hogs down 1.075 @ 78.575 & Feb pork cutout down 1.450 @ 90.550
- Cash weakness Friday pressured the market but may be temporary
- Hog cutouts are volatile – leaving demand ambiguous
- The May contract gapped lower on today’s session – this gap may need to be filled
- National Direct Afternoon report decreased 1.65
- Hog slaughter projected at 468K
- CME Lean Hog Index for 1/10: up 0.16 @ 73.73
Author
Brandon Doherty