CORN
- Mar corn down 1 @ 6.15
- Argentina received good rains over the weekend (up to 4 inches) which may help stabilize the crop (despite the losses that have already occurred)
- The May corn on China’s Dalian exchange is around the equivalent of $10.98 per bushel
- Private exporters reported 150,000 mt of corn for delivery to unknown during the 21/22 marketing year
SOYBEANS
- Mar soybeans down 17 @ 13.97
- Private exporters reported 132,000 mt of soybeans for delivery to China (half during the 21/22 marketing year and half during the 22/23 marketing year)
- Some analysts are predicting Brazilian soybean production below 130 mmt (vs the USDA’s 139 mmt)
- After 5 weekly higher closes, palm oil is lower
WHEAT
- Mar wheat up 9 @ 7.89, Mar KC up 15 @ 8.08, Mar MNPLS up 7 @ 9.43
- The US state department has ordered non-essential embassy staff to leave Ukraine, and has asked US citizens to leave the country
- Private analyst SovEcon is estimating Russia’s 2022 wheat production at 81.3 mmt (this compares to the USDA estimate of 75.5 mmt in 2021)
- Paris milling wheat futures are up Monday
- Russia’s export tax will be slightly lower this week at $95.80 per metric ton
CATTLE
- Feb LC down 1.850 @ 136.075 & Mar FC down 3.050 @ 160.250
- Both LC and FC gapped lower
- Cattle on Feed report was bearish
- On feed 1% higher than last year, placements 6% higher, and marketings were unchanged from last year
- Slaughter pace remains a concern
- Choice cuts down 0.57 and select up 0.15
- Cattle slaughter projected at 117K
- CME Feeder Cattle Index for 1/21: down 0.10 @ 161.10
HOGS
- Feb hogs down 0.700 @ 85.500 & Feb pork cutout down 0.275 @ 95.825
- Stronger cash indicates packers are willing to bid up
- There is concern that hog futures are overbought and due for a correction
- There is strong international demand for pork
- Hog slaughter projected at 454K
- CME Lean Hog Index for 1/24: up 0.72 @ 77.51
Author
Brandon Doherty