CORN
- Mar corn up 1 @ 5.97
- Starting today, the South American weather forecast is wet for the next 10 days; for most of Argentina (3 to 6 inches predicted)
- Potentially lower South American corn crop could add to the US corn export numbers
- Yields in northern Brazil are above average, but there is concern over quality because of wet conditions
- China’s 2021 corn imports are reported to be record large (28.35 mmt)
SOYBEANS
- Mar soybeans down 4 @ 13.66
- The US might pick up some soybean and soymeal export demand because of the lower Argentina crop
- The wet 10-day forecast for Argentina and southern Brazil is pressuring the market
- Private exporters reported 239,486 mt of soybeans for delivery to Mexico during the 21/22 marketing year
- Ag Rural reported the Brazilian soybean harvest is 1.2% completed
WHEAT
- Mar wheat up 22 @ 7.64, Mar KC up 23 @ 7.68, Mar MNPLS up 19 @ 8.97
- Rumors that China is buying wheat and barley are helping the market
- US HRW wheat is $12 to $13 cheaper per metric ton than Russian wheat
- Algeria bought 600,000 mt of milling wheat last week (likely sourced from Argentina and the EU)
- The Russian wheat export tax is expected to drop next week
- There has been talk over the weekend that Russia may still invade Ukraine
CATTLE
- Feb LC up 0.050 @ 138.025 & Mar FC down 0.900 @ 165.475
- Chart gaps remain above current levels and may need to be filled
- Lower cash last week was unsupportive
- Cash expected to be lower again this week
- Cattle are backing up in the market with increasing weights
- Choice cuts up 3.55 and select up 3.08
- Cattle slaughter projected at 114K
- CME Feeder Cattle Index for 1/14: down 0.021 @ 161.80
HOGS
- Feb hogs up 0.375 @ 81.275 & Feb pork cutout down 0.050 @ 93.750
- Traders expect more exports due to the spread of African Swine Fever in other countries
- The agreement with India that they will import pork comes with the expectation for increased exports as well
- Current slaughter pace remains a concern
- National Direct Afternoon report declined 2.49
- Hog slaughter projected at 462K
- CME Lean Hog Index for 1/18: up 1.30 @ 75.90