CORN
- Mar corn up 12 @ 6.38
- Weekly corn export inspections totaled 40.8 mb
- Paraguay continues to miss rains and temperatures remain hot there
- Estimates range from 400-500 mb of corn lost in South America
- Total corn demand my increase and bring the carryout down due to higher ethanol use and export numbers
SOYBEANS
- Mar soybeans up 36 @ 15.26
- Weekly soybean export inspections totaled 51.9 mb
- Estimates range from 500-900 mb of soybeans lost in South America
- Ag Rural projects the Brazilian soybean crop at only 128.5 mmt (about 11 mmt lower than the January WASDE report)
- Private estimates suggest the USDA could be underestimating soybean demand and carryout could be lower
WHEAT
- Mar wheat up 13 @ 7.74, Mar KC up 10 @ 7.91, Mar MNPLS up 14 @ 9.21
- Weekly wheat export inspections totaled 13.3 mb
- The slow export pace could force the USDA to lower exports and raise carryout in wheat
- A snow storm will move over the US southern Plains the next few days, but the forecast is for little precipitation – February is still expected to be drier than normal in that region
- The wheat market is trying to recover from yesterday’s selloff
CATTLE
- Feb LC up 0.375 @ 139.950 & Mar FC down 0.500 @ 162.525
- Strength yesterday may be due to slaughter pace beginning to return to normal
- Cattle Inventory report had lower numbers in all categories which may mean tighter supplies to come
- Choice cuts down 0.02 and select down 0.14
- Cattle slaughter projected at 121K
- CME Feeder Cattle Index for 1/31: down 0.22 @ 158.44
HOGS
- Feb hogs up 0.825 @ 89.300 & Feb pork cutout unchanged @ 97.600
- Cash and cutouts were weaker – despite this futures held
- Traders are anticipating the strong demand and tighter supplies
- Futures remain overbought and due for a correction
- National Direct Afternoon report decreased 6.58
- Hog slaughter projected at 474K
- CME Lean Hog Index for 2/1: up 1.54 @ 82.15
Author
Brandon Doherty