CORN
- March down 2 @ 4.93 & Dec down 2 @ 4.39
- Sharp margin increases push some traders out of the market today
- Funds continue to pour into the market – speculated to be 440K contracts long
- Corn remains cheapest globally compared to China & South America
- Light rains still expected for Brazil & Argentina
- Export net sales of 748.9K mt – down 22% from last week
SOYBEANS
- Jan down 16 @ 13.48 & Nov down 8 @ 11.45
- Palm oil futures finally fell pulling the entire soy complex with it
- South American ag firm lowered Brazil crop to 131.5 mmt compared to USDA’s 133 mt
- Funds continue to add to long contracts, speculated to be a record long of 400K contracts
- Daily export sales of 213.3K mt & 130K mt of soybeans – unknown destinations
- Important rains still hitting Brazil but still leaving Mato Grosso still too dry
- Export net sales of 37K – marketing year low – down 95% from last week
WHEAT
- March down 5 @ 5.97, KC Mar down 5 @ 5.98, Mar MPNL down 5 @ 6.09
- Wheat has fallen 25 cents off of Tuesday’s new contract high
- Rumors that Argentina might suspend wheat exports forced exporters to rush through export registrations
- Analysts have dropped Argentine wheat production to 17 mmt
- Paris milling futures & Black Sea futures plunged today also pulling US wheat
- Export net sales of 275.3K mt – down 47% from last week
CATTLE
- Feb LC down 0.15 @ 114.87 & Jan FC up 0.92 @ 136.70
- Live cattle continue the trend downward despite growing support in FC futures
- FC up today mainly due to the weakness in feed grains today
- The market wants to see boxed beef values stabilize
- Export net reductions of 1,200 mt
- Today’s slaughter estimated at 119K head
- Feeders are aggressive with asking price of 114+ & @ 136.13, down 0.43 for FC cash index
- O/I: -1509 contracts for Feb LC & O/I: -14 contracts for Jan FC
HOGS
- Feb Hogs down 0.52 @ 69.25 & Feb Pork Cutout down 0.55 @ 78.25
- Follow thru selling from yesterday’s triple-digit losses
- Backup of hogs in the country; overbought and June key reversal
- Export net reductions of 8,600 mt
- Hog slaughter estimated at 499K, Saturday runs expected near 387K head
- Cash lean index @ 61.47, up 0.86 for 1/5
- O/I: -1696 positions for hogs & pork cutout futures +13 positions
Author
Amberlee Bratcher