CORN
- Mar corn up 10 @ 6.42
- The drying trend is forecast to continue in Argentina and southern Brazil long term
- Ukraine is the origin of choice for corn for China – the situation with Russia could affect that
- Ethanol production has been running 9% higher than last year at this time
- Rain delays in northern Brazil are delaying safrinha corn planting
- May corn on China’s Dalian exchange is around the equivalent of $11.09 per bushel
SOYBEANS
- Mar soybeans up 17 @ 15.86
- USDA confirmed a sale of 240,000 mt of US soybeans for delivery to China during the 22/23 marketing year
- Export inspections and sales remain 24% below last year
- The American weather model forecasts some rains across parts of Argentina and Paraguay soon, but the European model is dry
- Soybean oil is following palm oil higher
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WHEAT
- Mar wheat up 7 @ 7.86, Mar KC up 10 @ 8.11, Mar MNPLS up 12 @ 9.52
- Stats Canada’s December wheat stocks came in 1.7 mmt below expectations at 15.564 mmt – helping to rally US futures yesterday
- US wheat markets are up at midday, but Paris milling futures are mixed
- North African countries are experiencing extreme drought
- Diplomatic efforts are still trying to diffuse the Russia situation
CATTLE
- Apr LC up 1.500 @ 147.675 & Mar FC up 1.750 @ 168.625
- Traders anticipate stronger cash this week, supporting futures
- Boxed beef continues to show weakness
- Packers may have to bid up to obtain cattle to keep up with slaughter pace
- Choice cuts down 1.50 and select down 1.20
- Cattle slaughter projected at 121K
- CME Feeder Cattle Index for 2/8: up 1.29 @ 161.43
HOGS
- Apr hogs up 0.550 @ 104.350 & Apr pork cutout unchanged @ 111.150
- Supplies could be affected by truckers in Canada blocking supply routes
- Futures continue to show strength (due to anticipation of tightening supply)
- Futures remain overbought and due for a correction
- National Direct Afternoon report increased 7.99
- Hog slaughter projected at 475K
- CME Lean Hog Index for 2/9: up 0.75 @ 86.62