CORN
- Mar corn down 9 @ 6.26
- Ethanol production is running 13% above the USDA’s goal
- Lower South American crops may increase US corn export demand
- March crude oil hit almost $90 per barrel
- Some analysts are lowering Argentina’s corn production estimates to 43-46 mmt (down from USDA’s 54 mmt)
SOYBEANS
- Mar soybeans up 9 @ 15.38
- Private exporters reported sales of 380,000 mt of soybeans for delivery to unknown during the 21/22 marketing year
- Despite being on holiday, China has made purchases of US new crop soybeans the past two days
- South American farmers are not selling, in part due to the higher Brazilian real
WHEAT
- Mar wheat down 9 @ 7.60, Mar KC down 10 @ 7.76, Mar MNPLS up 3 @ 9.18
- Russia / Ukraine tensions have eased for now, but troops remain on the border
- Paris milling futures are lower at midday
- On the February 9th USDA report, US wheat exports could be lowered and carryout increased (due to slow export pace)
- La Nina may stick around until US summer which may add to dry conditions in the southern Plains
CATTLE
- Feb LC up 0.725 @ 141.025 & Mar FC up 2.450 @ 166.100
- Cattle Inventory report was friendly with the lowest inventory in seven years – this may be more impactful long term
- Live cattle established new contract highs yesterday
- Feedlots want to move cattle due to rising grain prices
- Choice cuts down 4.96 and select down 3.05
- Cattle slaughter projected at 121K
- CME Feeder Cattle Index for 2/1: up 0.33 @ 158.77
HOGS
- Feb hogs down 0.300 @ 87.850 & Feb pork cutout down 0.625 @ 97.000
- April hogs made new highs, likely keeping traders interested in buying
- Packers have become more aggressive due to strong demand and increasing slaughter
- Cash and cutout prices were not released yesterday due to packer submission problems
- Futures remain overbought and due for a correction
- Hog slaughter projected at 440K
- CME Lean Hog Index for 2/2: up 0.99 @ 83.14