CORN
- Mar corn down 3 @ 5.98
- Argentina will remain hot and dry until the weekend, when rains are forecasted to begin
- CONAB lowered their Brazil corn estimate to 112.9 mmt (from 117.2 mmt)
- South Korea purchased 130,000 tons of corn yesterday
- EIA data today is likely to show ethanol production above the weekly average needed to meet the USDA’s projection for the 14th week in a row
SOYBEANS
- March soybeans down 4 @ 13.83
- Palm oil and canola are near contract highs this morning
- CONAB lowered their Brazil soybean production estimate to 140.5 mmt, which is still higher than many private estimates
- The rains and cooler weather coming to South America in the next week may be beneficial to crops there
WHEAT
- Mar wheat down 3 @ 7.67, Mar KC down 6 @ 7.86, Mar MNPLS down 7 @ 9.21
- Wheat is trading lower at midday after the recent technical correction upwards
- Expectations are for winter wheat seedings to increase by 500,000 acres to 34.1 million acres
- Iraq tender results are expected Thursday (expectations are for 500,000 mt)
- Russia’s export tax is close to $100 per metric ton
CATTLE
- Feb LC down 0.725 @ 136.950 & Mar FC down 0.650 @ 165.700
- Slower slaughter this week is pressuring the market
- Cattle futures bounced off support levels yesterday which may bring buyers into the market
- Chart gaps remain above current levels and may need to be filled
- Choice cuts up 2.18 and select up 2.13
- Cattle slaughter projected at 116K
- CME Feeder Cattle Index for 1/11: up 0.26 @ 162.24
HOGS
- Feb hogs up 1.050 @ 78.900 & Feb pork cutout up 0.450 @ 90.475
- Hog futures are turning around after three days of liquidation
- The reduction in slaughter pace is leaving sufficient hogs available to the market
- National Direct Afternoon report increased 1.10
- Hog slaughter projected at 458K
- CME Lean Hog Index for 1/12: up 0.43 @ 75.13