TFM Midday Update 1-13-2021

CORN

March up 8 @ 5.25 & Dec down 3 @ 4.54
Corn open interest surged by nearly 40,000 contracts yesterday.
Market continues to push higher after yesterday’s bullish USDA report.
S. American weather in Argentina remains questionable.
US exports expected to climb as still cheapest corn globally.
Argentina removed export daily cap after farmers continue to strike in response.
Ethanol production report for the week averaged 941K barrels – down 14.06 from last yr

Jan down 5 @ 14.16 & Nov up 1 @ 11.77
Soybeans having a small set back but after yesterday’s report should still push higher.
Soybean meal is also down today after setting new contract high yesterday
Funds estimated to have bought another 15,000 contracts yesterday
Daily export sales 464K mt – delivery unknown
All of Brazil’s most important growing areas will receive rain within next 10 days

March down 6 @ 6.59, Mar KC down 1 @ 6.22, Mar MNPLS up 1 @ 6.30
Not much new news for wheat today, fellow feed grains continue to push higher
Russia proposed raising the export tax to 45 Euros starting March 15^th
Weather remains cold in the plains, but not cold enough to risk winterkill right now
Southern Russia will receive periods of much needed snow over next 10 days
Food security may emerge as a factor to support prices moving forward

Feb LC down .32 @ 112.15 & Jan FC up .37 @ 133.60
Higher feed prices & production costs add pressure to market
Packers are quickly backing away from last week’s price levels with corn rally
Today’s slaughter est. at 119K head
Early bids developing around 109 for LC & @ 135.63, up .28 for 1/7 for FC cash index
O/I: -8351 contracts for Feb LC & O/I: +254 contracts for Jan FC

February Hogs down 1.27 @ 67.22 & Feb Pork Cut out down .82 @ 77.72
Sell off in futures on abrupt tumble in pork cutout – ham cuts falling $14+ yesterday
Concerns higher feed prices & pork price uncertainty add to weakness
Hog slaughter estimated at 493K & Saturday runs are expected near 256K head
Cash lean index @ 64.49, up .58 for 1/11
O/I: -7558 positions for hogs & pork cutout futures +94 positions

Amberlee Bratcher