CORN
- Mar corn up 2 @ 6.86
- Corn inspections at 20.8 mb brought the 22/23 total inspections to 474 mb
- The market has concerns about Argentina weather, which looks like it could revert back to a dry pattern
- Rains in central and northern Brazil are slowing the soybean harvest, but also causing concern about corn plantings
- Both Ukraine and Brazil corn offers remain cheaper than US
- Brazil’s larger second crop (safrinha) corn is said to be 5% planted
SOYBEANS
- Mar soybeans up 1 @ 15.36
- Soybean inspections at 68.2 mb brought the 22/23 total inspections to 1322 mb
- March soybean meal yesterday hit a new contract high of 488.70
- China’s March soybeans hit a 7-month high
- Argentina crush pace is well below what the USDA is forecasting for their annual crush
- Brazil is having logistic issues in getting beans to port
- Brazil’s soybean harvest is 5% complete, but that is about half of last year’s pace
Like what you’re reading?
Sign up for our other free daily TFM Market Updates and stay in the know!
WHEAT
- Mar Chi wheat up 10 @ 7.62, Mar KC up 5 @ 8.79 & Mar MNPLS up 5 @ 9.26
- Wheat inspections at 16.4 mb brought the 22/23 total inspections to 486 mb
- Funds are net short 73,802 contracts of Chi wheat (equivalent to 369 mb, which is more than the US produced in 2022)
- Winterkill is still a concern for some HRW wheat areas
- Egypt’s GASC is said to be tendering for wheat
- Chances for precipitation in the US southwestern plains on the 6-14 day forecast
CATTLE
- Feb LC down 0.025 @ 158.725 & Mar FC up 1.375 @ 185.300
- Live cattle contracts, April forward, made new contract highs yesterday
- Cattle Inventory report will be out this afternoon – expected to be bullish
- Pre-report expectations: beef herd down 4.2% and calf crop down 2.8%
- Talk that cash may be no better than steady this week
- Choice cuts up 0.34 and select up 0.98
- Cattle slaughter projected at 128K
- CME Feeder Cattle Index for 1/30: up 0.31 @ 179.88
HOGS
- Feb hogs down 0.225 @ 74.925 & Feb pork cutout UNCH @ 82.925
- February futures continue to converge with cash
- Hogs are oversold and funds are net short – this could lead to short covering
- Strong slaughter pace without difficulty obtaining hogs is keeping packers less aggressive
- National Direct Afternoon report declined 0.30
- Hog slaughter projected at 491K
- CME Lean Hog Index for 1/31: up 0.07 @ 72.71
Author
Brandon Doherty