CORN
- Mar corn down 3 @ 6.07
- The forecast for Argentina and southern Brazil remains dry for the next two weeks
- Northern Brazil’s forecast remains very wet with expected totals of 5-12 inches in the next 10 days (delaying early harvest and causing quality concerns)
- Some analysts are predicting a decline of 8-10 mmt in South America’s corn crop
- There are rumors that China may buy 5-7 mmt of US corn
SOYBEANS
- March soybeans up 5 @ 13.95
- Some analysts are predicting a decline between 15-20 mmt in South America’s soybean crop
- Barge basis along the Illinois river increased yesterday, suggesting there may be new soybean sales to China
- March soybeans yesterday closed at their highest level since July
- Palm oil again reached a new contract high due to flooding in Malaysia and Indonesia
WHEAT
- Mar wheat down 7 @ 7.63, Mar KC down 13 @ 7.91, Mar MNPLS down 10 @ 9.61
- Russia has likely shipped less wheat than what the USDA is estimating
- Significant reductions in winter wheat crop ratings may help support the market
- There are rumors that Iraq may have bought as much as 200,000 mt of HRW wheat but results from the tender are expected next week
- Weather forecast for the US southern plains continues to remain dry for at least the next two weeks
CATTLE
- Feb LC down 0.775 @ 137.050 & Mar FC down 0.725 @ 165.625
- Both live and feeder cattle gapped lower on the charts yesterday
- Yesterday may have been the first day in a liquidation phase (which can typically last 2-3 days)
- Packers may be unwilling to bid up due to the pressure on futures as well as higher corn prices
- Choice cuts up 0.79 and select up 0.33
- Cattle slaughter projected at 117K
- CME Feeder Cattle Index for 1/4: down 3.00 @ 162.35
HOGS
- Feb hogs up 0.900 @ 81.050 & Feb pork cutout up 0.525 @ 93.125
- With the exception of February, hog futures resisted spillover pressure from cattle yesterday
- Bullish potential due to trader concern over tightening supply
- Higher cash is helping to support the market
- National Direct Afternoon report increased 1.37
- Hog slaughter projected at 474K
- CME Lean Hog Index for 1/5: up 0.90 @ 72.75