CORN
- Mar corn up 6 @ 6.05
- Corn inspections at 47.4 mb (total inspections at 602 mb)
- Despite South American rain events, overall dryness remains a concern and is helping to support the market
- La Nina pattern could cause dryness to permeate into the US western corn belt this spring / summer
- May corn on China’s Dalian Exchange is around the equivalent of $10.92 per bushel
SOYBEANS
- Mar soybeans up 19 @ 13.80
- Soybean inspections at 63.2 mb (total inspections at 1229 mb)
- Argentina will see 2-4 inches of rain but will go back to a drier pattern after about 10 days
- NOPA crush estimated at 186.4 mb in December (higher than expectations and up 2% from last year)
- April palm oil gapped higher to a new contract high
- Higher crude oil could increase biofuel demand
WHEAT
- Mar wheat up 17 @ 7.86, Mar KC up 17 @ 7.90, Mar MNPLS up 20 @ 9.27
- Wheat inspections at 13.6 mb (total inspections at 470 mb)
- Fears of a Russian invasion in Ukraine caused a sharp rally yesterday
- US southern plains remain dry and that pattern could continue this spring
- Paris milling wheat futures gapped higher
- The Buenos Aires Grain Exchange revised Argentina’s wheat production – increasing to 21.8 mmt
CATTLE
- Feb LC up 1.125 @ 138.800 & Mar FC up 1.025 @ 166.45
- Chart gaps remain above current levels and may need to be filled
- Consumer demand for beef is strong
- Cattle in the north traded steady money, but the south traded $1.00-$1.50 lower
- Slaughter may increase over the next few weeks
- Choice cuts up 1.63 and select up 1.34
- Cattle slaughter projected at 117K
- CME Feeder Cattle Index for 1/18: down 0.50 @ 161.30
HOGS
- Feb hogs down 0.100 @ 81.500 & Feb pork cutout down 0.725 @ 93.500
- Packers were willing to bid up yesterday
- Slaughter pace remains a concern but shows signs of improvement
- African Swine Fever remains a concern in other countries
- National Direct Afternoon report increased 4.08
- Hog slaughter projected at 469K
- CME Lean Hog Index for 1/19: up 0.88 @ 76.78