CORN

• Dec corn down 6 @ 5.80
• Tensions between Russian and Ukraine are adding to marketplace uncertainty
• USDA WASDE report due for release on Thursday – trade expects a small decline in US corn carryout
• Central Brazil had rains over the weekend – southern Brazil and northern Argentina are drier
• January corn on China’s Dalian exchange is around the equivalent of $10.55 per bushel
• DTN National Soybean Index is near two-month highs

SOYBEANS

• Jan soybeans down 8 @ 12.59
• Expectation for higher carryout on the USDA WASDE report due to lower US soybean exports
• Soybean harvest could come early in South America, cutting into our export demand
• Stats Canada pegged the canola crop at 12.60 mmt (down 35% from last year)
• January soybeans on China’s Dalian exchange are around the equivalent of $17.79 per bushel
• DTN National Soybean Index is near two-month highs

WHEAT

• Dec wheat down 8 @ 7.86, Dec KC down 7 @ 8.15, Dec MNPLS up 11 @ 10.47
• KC wheat is forming a head and shoulders chart pattern
• Talk last week out of Russia that they may limit wheat exports to 9 mmt starting in February
• US forecast remains mostly dry in the southwest Plains
• The tensions between Russia and Ukraine could cause wheat prices to spike
• Saudi Arabia is reported to have bought 25.3 mb of wheat

CATTLE

• Dec LC unchanged @ 137.675 & Jan FC down 0.675 @ 163.450
• Anticipation for higher cash this week
• Packers have been aggressive – purchasing cattle to maintain slaughter pace
• Demand remains strong with higher boxed beef last week
• Choice cuts up 2.34 and select up 0.39
• Cattle slaughter projected at 119K
• CME Feeder Cattle Index for 12/3: up 0.24 @ 161.58

HOGS

• Dec hogs down 1.000 @ 73.000 & Dec pork cutouts down 1.375 @ 85.250
• Cutouts remain volatile
• There is a sufficient supply of hogs, yet packers are purchasing aggressively
• China is back in the market and export sales have been good
• National Direct Afternoon report increased 3.93
• Hog slaughter projected at 482K
• CME Lean Hog Index for 12/6: down 0.33 @ 70.53

Author

Brandon Doherty