CORN
- March up 2 @ 5.24 & Dec up 1 @ 4.49
- Daily export sales announced 336.5K mt of corn – delivery unknown
- US corn continues to hold a sharp price advantage in world markets thru spring
- Weather in US is mostly dry with seasonal to warm temps
- Argentina’s weather turns dry again for the next 7-10 days
- Projected funds liquidated 70,000 positions – still net long around 350K
- Argentine truckers now on strike as well due to low wages
SOYBEANS
- March up 4 @ 13.73 & Nov down 1 @ 11.71
- Daily export sales announced 136K mt to China & 163.2K mt to Mexico
- Soybean oil had key reversal – giving support to soy complex early a.m.
- US soybean sales already nearly 93% of the USDA projection
- Chinese crush margins are stronger – implying more import need
- Argentine farmers have picked up sales ahead of possible export taxes
- Brazil’s soybean production projected record large 135.6 mmt vs USDA’s 133 mmt
WHEAT
- March down 7 @ 6.60, KC Mar down 2 @ 6.34, & Mar MNPLS down 2 @ 6.43
- Daily export sales announced 138K mt of HRW to Nigeria
- Paris milling futures back up slightly for the morning
- Rising Black Sea prices should keep support under US wheat as well
- US continues to become more competitive in global markets
- US Plains continues to be too dry as effects of La Nina spread as predicted
CATTLE
- Feb LC up .80 @ 114.15 & Jan FC up .35 @ 135.65
- Cattle on Feed report due tomorrow 2:00 p.m CT – trade expects friendly report
- Renewed daily strength in corn threatens FC market
- Today’s slaughter est. at 120K head
- Asking prices around 113 for LC & @ 132.81 down .09 for 1/19 for FC cash index
- O/I: -3700 contracts for Feb LC & O/I: –227 contracts for Jan FC
HOGS
- February Hogs down .25 @ 68.17 & Feb Pork Cutouts up .10 @ 78.87
- Wild moved in pork futures driven by extreme swings in Ham & Belly prices
- China reports first African swine fever outbreak in nearly 3 months
- Hog slaughter estimated at 497K, Saturday runs are projected at 321K head
- Cash lean index @ 65.67 down .25 for 1/19
- O/I: -2107 positions for hogs & pork cutout futures +10 positions
Author
Amberlee Bratcher