CORN
- Dec corn up 6 @ 5.83
- Fears over the omicron virus seem to be waning
- China is buying Ukraine corn
- Ukraine’s corn crop could be 40 mmt
- OPEC announced they were sticking with planned production increases of 400,000 barrels per day in January
- Corn export commitments are at 1.392 bb, which is the 2nd largest on record for this time frame
SOYBEANS
- January soybeans up 20 @ 12.64
- Some analysts suggest China will take 102 mmt of soybeans this year (29% would be from the US vs 36% last year)
- Estimates for next year suggest China will take 103 mmt of soybeans
- Yesterday China bought 6 cargoes of soybeans from the US
- Argentina and southern Brazil are dry – dryness in Brazil covers about 40% of the soybean area
- January has moved above the 50 day moving average
WHEAT
- Dec wheat unchanged @ 8.06, Dec KC up 2 @ 8.41, Dec MNPLS down 4 @ 10.57
- Matif wheat is bouncing back from recent lows
- US wheat is back under pressure today, along with Paris milling wheat futures
- Australia is still seeing some light shower activity in the east
- China is buying Australian feed wheat, helping to firm their futures
- Stats Canada is expected to reduce their wheat crop – average estimate at 21.2 mmt vs 35.18 mmt last year
- Jordan, Algeria, and Saudi Arabia are all tendering for wheat
CATTLE
- Dec cattle down 0.475 @ 137.175 & Jan FC down 2.150 @ 163.625
- Packers paid higher cash than expected, helping to support the market
- Demand remains strong as omicron virus fears begin to subside
- Slaughter pace continues to be brisk
- Choice cuts up 1.80 and select up 0.28
- Cattle slaughter projected at 114K
- CME Feeder Cattle Index for 12/2: down 0.26 @ 161.34
HOGS
- Dec hogs down 0.175 @ 74.225 & Dec pork cutouts unchanged @ 87.000
- There has been a lot of volatility in cutouts
- Packers were more aggressive early in the week and less so now
- China was listed as a buyer in the weekly export sales report
- National Direct Afternoon report declined 0.08
- Hog slaughter projected at 479K
- CME Lean Hog Index for 12/3: up 0.59 @ 70.86
Author
Brandon Doherty