CORN
- Dec up 8 @ 5.63
- Dec up 2 @ 5.71
- Big rally in corn yesterday – talk that China was buying Ukraine corn
- USDA did raise the corn crop on their report, but also raised ethanol, which offset that
- Based on the La Nina pattern, the US could have a dry spring and summer
- Rain and some snow are moving across the Midwest today – delaying the remaining harvest
SOYBEANS
- Nov up 12 @ 12.15
- US crush margins are favorable offering support to the basis
- South American conditions are mostly favorable
- Palm oil production increased to 1.725 mmt vs expectations of 1.687 mmt
- US soybean export commitment is running behind the USDA’s forecast
- Harvest of the remaining 12-13% of the crop is being delayed by weather
WHEAT
- Dec wheat up 11 @ 8.14, Dec KC up 10 @ 8.27, Dec MNPLS up 14 @ 10.60
- Russian wheat prices are still cheap compared to most origins
- Wheat is surging higher despite the US Dollar also being higher
- Russian Ag Minister stated a new export quota for January – June will be announced soon
- Some analysts feel that Russia’s export tax may get to $100 per metric ton
- More heavy rains are expected in eastern Australia wheat growing regions
CATTLE
- Dec LC down 0.425 @ 131.575 & Jan FC unchanged @ 158.050
- Higher cash will provide support to the market
- Packers need cattle to maintain the slaughter pace
- Choice cuts down 2.28 and select down 4.00
- Cattle slaughter projected at 115K
- CME Feeder Cattle Index for 11/10: up 0.12 @ 154.98
HOGS
- Feb hogs up 0.150 @ 79.475 & Feb pork down 0.225 @ 92.375
- Hog futures showing strength today
- The government may allow some plants to increase chain speed
- Packers remain unaggressive due to heavy supply
- National Direct Afternoon report declined 0.57
- Hog slaughter projected at 449K
- CME Lean Hog Index for 11/11: down 0.51 @ 78.72