CORN
- Mar corn down 9 @ 6.27
- The GFS weather model shows rains in Argentina at 70-75% of normal this week, with only 40% of normal for the second week
- Argentina’s Ag Attaché reduced the corn crop estimate to 51 mmt (vs 54.5 mmt previously and the USDA’s 54.0 mmt)
- Argentina’s Ag Attaché reduced their exports to 36 mmt (vs the USDA’s 39 mmt)
- Funds bought corn last week – net long 276,521 contracts
SOYBEANS
- Mar soybeans up 16 @ 14.86
- Private exporters reported sales of 129,000 mt of soybeans for delivery to China (66,000 for delivery during 21/22 marketing year and 63,000 during 22/23)
- Malaysian palm oil continues to make new highs
- Wet weather in northern Brazil continues to cause harvest issues
- Soybean futures are deep into overbought territory
WHEAT
- Mar wheat down 16 @ 7.70, Mar KC down 14 @ 7.88, Mar MNPLS down 17 @ 9.03
- Strong trade overnight but wheat is falling apart at midday
- Paris milling wheat futures are sharply lower
- Volatility in wheat will remain high due to the Ukrainian border conflict
- Egypt last week bought 420,000 mt of wheat from Ukraine, Russia, and Romania
CATTLE
- Feb LC up 1.000 @ 139.700 & Mar FC up 2.700 @ 162.325
- Cash is expected to be steady this week
- Feedlots want to move cattle due to high feed prices
- Packers may need to bid up to take advantage of strong profit margins
- Choice cuts up 1.31 and select up 4.31
- Cattle slaughter projected at 118K
- CME Feeder Cattle Index for 1/28: down 0.39 @ 158.66
HOGS
- Feb hogs up 0.425 @ 88.350 & Feb pork cutout up 0.375 @ 97.925
- Packers are in need of hogs with good demand and improving slaughter pace
- Futures are still overbought and due for a correction
- National Direct Afternoon report increased 1.29
- Hog slaughter projected at 472K
- CME Lean Hog Index for 1/31: up 0.86 @ 80.61
Author
Brandon Doherty