CORN
- March up 4 @ 4.96 & Dec up 3 @ 4.42
- Corn finally challenged 5.00 in overnight trade, first since 2014
- Internal corn prices of China continue to accelerate
- Ethanol profitability continues to suffer with US corn surge
- Argentina still expected to get minimal rains on stressed areas
- Funds continue to add positions, near 415K contracts log
- Ethanol production avg 935K barrels per day – down 11.96 last year
SOYBEANS
- Jan up 25 @ 13.75 & Nov up 20 @ 11.61
- Soybeans continue to inch near 14.00
- The entire soy complex – meal, beans, oil – all reached new contract highs
- S. American weather continues to be of concern – Brazil fairing better than Argentina
- Funds continue to buy in, 13th contract high day in a row
WHEAT
- March down 4 @ 6.50, Mar KC down 2 @ 6.07, Mar MPLS up 1 @ 6.17
- Wheat having slight set back today, could be minor profit taking
- Rising Black Sea cash & new highs in Paris milling keep prices supported
- Ukraine’s production is expected to be 64.5 mmt versus last year 75.1 mmt
- Argentine wheat production forecasts are dropping toward 17 mmt
- Drought continues to be of concern both in US & Russia key growing areas
CATTLE
- Feb LC up 0.05 @ 115.10 & Jan FC down 1.05 @ 135.62
- Traders adjusting positions following triple-digit gains yesterday
- All eyes on grain trade & outside market trade today & rest of the week
- Lots of uncertainty due to back-and-forth swings in boxed beef prices
- Today’s slaughter estimated at 119K head
- Cattle prices remain quiet for LC @ 136.13, down 0.43 for 1/4 for FC cash index
- O/I: -591 contracts for Feb LC & O/I: -449 contracts for Jan FC
HOGS
- February Hogs down 1.10 @ 69.85 & Feb Pork Cutout down 0.97 @ 78.60
- Focus remains on long-term in deferred futures, as funds focus on pork demand growth
- Feb futures giving up short-term support of 70.00 for the morning
- Hog slaughter estimated at 385K head
- Cash lean index @ 61.47, up 0.85 for 1/4
- O/I: -251 positions for hogs & pork cutout futures +18 positions
Author
Amberlee Bratcher