CORN
- Mar down 1 @ 5.32 & Dec down 2 @ 4.41
- Ethanol production for last week average 933K barrels – down 9.33% from last yr
- Argentina weather over next 10 days – opportunities for rain in most of the nation
- Daily export sale of 680K mt of corn to China
- Sharp a.m. rally attributed to China demand/buying
- Truckers in Argentina are still blocking roads into the ports
SOYBEANS
- Mar up 3 @ 13.73 & Nov up 1 @ 11.50
- US soybean crushers buy up extra beans as supply scramble looms
- China soybean imports may hit new record 110M tonnes in 2021/22
- Crops in Brazil will remain favorable – northeast Brazil still too dry
- Daily export sale of 132K mt to China & 126.5K to unknown destination
- Truckers in Brazil are threatening to strike due to low wages
WHEAT
- Mar down 11 @ 6.54, KC Mar down 8 @ 6.32 & Mar MNPLS down 8 @ 6.39
- US HRW wheat areas benefited from this week’s snowstorm but need more moisture
- La Nina not slowing down – suggesting a warmer & dryer US summer
- A failed trade war, China now importing record amounts of wheat from Australia.
- Russia confirmed a 50-euro tax on wheat exports starting March 1
- Crop conditions report concerning as good/excellent ratings fall for most of HRW areas
CATTLE
- Feb LC down 0.80 @ 116.20 & Mar FC down 0.95 @ 143.32
- LC – Big premiums and overbought technically but no sign of topping out yet
- Corn market continues to pressure both cattle markets for the day
- January feeder cattle last trading day, Thursday 1/28
- Today’s slaughter est. at 119K head
- Cash developed around 113 for LC & @ 134.96, up 0.48 for 1/25 for FC cash index
- O/I: -4224 contracts for Feb LC & O/I: -248 contracts for Jan FC
HOGS
- Feb Hogs down 0.02 @ 70.45 & Feb Pork Cutout up 0.15 @ 82.85
- Steep uptrend but overbought & holding large premium to cash
- Underlying tone of the market still friendly – corn prices pressure front months
- Hog slaughter estimated at 492K head
- Cash lean index @ 66.23 up 0.35, for 1/25
- O/I: -586 positions for hogs & pork cutout futures -4 positions
Author
Amberlee Bratcher