CORN
- Mar down 1 @ 5.51 & Dec down 2 @ 4.55
- Net drying is expected across a majority of Argentina through next Tuesday
- Southern Brazil will be dry and could be a concern for any newly planted corn
- Energy markets & crude markets are up – supportive to futures
- Funds are estimated to be long 377,000 of corn
SOYBEANS
- Mar down 2 @ 13.82 & Nov flat @ 11.85
- Strong US dollar and better Brazil harvest weather weaken market
- Jan US NOPA soybean crush 2nd largest monthly crush of 184.654 mb
- Conditions in much of Brazil will continue to be favorable
- Rains in central & northern Brazil continue to slow harvest – expected for the next week
- Palm oil, bean oil, and canola markets all higher – lending support
- Funds maintain estimated combined long roughly 170,000 contracts of soybeans
WHEAT
- Mar down 17 @ 6.40, Mar KC down 14 @ 6.22, Mar MNPLS down 12 @ 6.29
- US southern Plains wheat areas will see showers across the south today
- Temps will trend warmer through this week for US – focus will now return back to drought
- Australia’s latest crop estimate puts total production at record 33 mmt
- Wheat sales are running down 2% to stay on USDA’s pace
- Paris milling futures down today adding pressure to futures
CATTLE
- Apr LC down 1.95 @ 123.85 & Mar FC down 2.25 @ 138.55
- FC continue to be leery of corn prices
- April cattle trading at a large premium to cash
- Today’s slaughter est. at 107K head
- Cash trade may be unlikely with power outages & complications from cold
- Open interest gained 3,820 for April futures & lost 550 for March FC
HOGS
- Apr hogs down 0.42 @ 85.72 & Apr Pork Cutout up 0.17 @ 92.52
- Technical indicators are at overbought extreme and premium cash
- Once weather returns to normal cash prices could decline
- Hog slaughter estimated at 468K head
- Cash lean index @ 75.51 up 0.97 for 2/15
- O/I: +36 positions for April hogs & pork cutout futures -37 positions
Author
Amberlee Bratcher