Provided by Stewart-Peterson Inc.

CORN

• Mar corn up 3 @ 6.84
• Private exporters reported sales of 195,000 mt of corn for delivery to Mexico during the 22/23 marketing year
• The Buenos Aires Grain Exchange is expected to show more poor crop ratings for Argentina when they release an update this afternoon
• The US Dollar Index is near the lowest level in 7 months
• Forecasted rains for Argentina are offering weakness, with the possibility for 2-5 inches over the next couple weeks

SOYBEANS

• Mar soybeans down 4 @ 15.20
• NOPA crush at 177.5 mb was lower than expected, but crush margins are still positive
• Next week is China’s Golden Week holiday so not much business will be expected from them
• Microsoft announced a layoff of 10,000 workers – this (along with general recession fears) is pressuring equity markets which may spillover into commodities
• Brazil Feb soy offers are said to be 65-75 cents cheaper than the US Gulf
• Mato Grosso’s soybean harvest is 2% complete

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WHEAT

• Mar Chi wheat up 2 @ 7.45, Mar KC up 3 @ 8.44, & Mar MNPLS up 7 @ 9.08
• Shower activity in the US southern plains may pressure the wheat market
• For unknown reasons, Putin is reportedly asking Russia to slow their export numbers
• Paris milling futures are down for 8 out of the last 10 days
• There is said to be a backlog of 100 vessels in Turkey, waiting for inspection – and according to the UN, Russia is intentionally delaying inspections

CATTLE

• Feb LC down 0.950 @ 155.850 & Mar FC down 2.125 @ 179.600
• Cattle on Feed report will be released on Friday
• Boxed beef was weaker and cash has not traded
• Cash is expected to be no better than steady this week
• Consumer demand may be slowing
• Choice cuts down 2.58 and select down 0.67
• Cattle slaughter projected at 127K
• CME Feeder Cattle Index for 1/18: down 1.96 @ 179.09

HOGS

• Feb hogs down 0.450 @ 76.875 & Feb pork cutout down 0.375 @ 84.650
• China’s Dec hog slaughter was up 18% from Nov (and up 7% from last year)
• Lower cash and the lower trend in cutouts were unsupportive
• Hog futures are oversold and due for a correction
• February futures remain at a premium to the index
• National Direct Afternoon report declined 0.18
• Hog slaughter projected at 477K
• CME Lean Hog Index for 1/19: up 0.12 @ 74.30

Author

Brandon Doherty