CORN
- Mar corn down 1 @ 6.26
- USDA reported an increase of 55.2 mb of corn export sales
- Fed comments yesterday were hawkish with talk about reducing stimulus and raising rates as early as March
- Weather in Argentina and southern Brazil is expected to return to a drier pattern (though central and northern Brazil will continue to see rains)
- May corn on China’s Dalian Exchange is around the equivalent of $11.07 per bushel
SOYBEANS
- Mar soybeans up 8 @ 14.48
- USDA reported an increase of 37.7 mb of soybean export sales
- Ukraine is the worlds largest exporter of sunflower seed oil – conflict there could affect the world veg oil market and help support soybean oil
- The recent rally in crude oil is also helping soybean oil
- The World Trade Organization has sided with China on a dispute, giving them authority to enforce tariffs on US imports
WHEAT
- Mar wheat down 13 @ 7.82, Mar KC down 10 @ 8.06, Mar MNPLS down 4 @ 9.12
- USDA reported an increase of 24.9 mb of wheat export sales
- Snow in parts of Colorado, Kansas, and the panhandles of Oklahoma and Texas brings moisture to crops in those areas, which have been very dry
- The US will not agree to Russia’s mandate that Ukraine be banned from NATO
- Tensions have eased a bit in the Black Sea region but the situation is not resolved
CATTLE
- Feb LC down 0.225 @ 137.825 & Mar FC down 1.050 @ 159.750
- Live cattle closed some chart gaps, and nearby feeder cattle still have gaps above current levels
- Cash trade was lower with no expectations for that to change the rest of the week
- Choice cuts down 2.92 and select down 3.60
- Cattle slaughter projected at 118K
- CME Feeder Cattle Index for 1/26: down 0.27 @ 159.50
HOGS
- Feb hogs down 1.150 @ 86.875 & Feb pork cutout down 0.900 @ 96.625
- Stochastics show that hog futures are overbought and are showing potential sell signals
- Prop 12 was suspended by a California court – enforcement of the law moved back at least 6 months
- Slaughter pace still is not fully up to speed
- National Direct Afternoon report declined 3.84
- Hog slaughter projected at 475K
- CME Lean Hog Index for 1/27: up 0.75 @ 79.20
Author
Brandon Doherty