CORN
- March up 9 @ 4.92 & Dec up 4 @ 4.38
- Managed money net position 332,045 long corn
- Argentina continues to reflect poor vegetation & increasing stress on corn & beans
- Funds continue to add long positions – managed money funds long 309K contracts
- Brazil & China corn prices keep USA corn the cheapest globally available
- Corn futures surged 14% in 2nd half of Dec, not seen in over 30 years
SOYBEANS
- Jan up 45 @ 13.61 & Nov up 30 @ 11.50
- Managed money net position 196,487 long soybeans
- U.S. farmer has sold as much as 90-95% of 2020 crop
- Next week USDA “could” lower carryout as low as 100 mb
- Brazil conditions have improved – ample rains in 7-day forecast
- Palm oil continues to surge – highest price in 10 years
- Mato Grosso continues to be too dry
WHEAT
- Mar up 16 @ 6.58, KC Mar up 12 @ 6.11, MPLS Mar up 11 @ 6.18
- Managed money net position 55,560 long KC wheat & 13,360 long Chi wheat
- U.S. grains & rising Black Sea & European wheat values dragging wheat higher
- U.S. hard red winter becoming more competitive
- Condition ratings for Kansas 46% good/excellent from 33% rating in Nov
- Drought continues to expand in western half of U.S. southern Plains
- USD continues to falter – low of today 89.54
CATTLE
- Feb LC up 3.00 @ 115.30 & Jan FC up 2.37 @ 137.32
- February futures remain well above December support levels of 110.77
- Packers watching the market direction to determine bids later in the week
- Today’s slaughter estimated at 119K head
- Cattle prices remain quiet for LC & @ 136.55 down 0.22 as of 1/1 for FC cash index
- O/I: -3732 contracts for Feb LC & O/I: -726 contracts for Jan FC
HOGS
- February Hogs down 0.50 @ 70.72 & Feb Pork Cutout down 0.30 @ 79.60
- Feb futures continue to lead market lower as traders try to establish base price
- If prices can hold 70.00 support levels would help instill market support short-term
- Hog slaughter estimated at 488K & Saturday runs are expected near 385K head
- Cash lean index @ 60.62 up 0.55 for 12/31
- O/I: +1048 positions for hogs & pork cutout futures +188 positions
Author
Amberlee Bratcher