CORN
- March up 1 @ 4.26 & Dec up 1 @ 4.12
- Funds net buyers 1K in corn – O/I +9,100 contracts
- 4 day in a row positive, still very sideways
- Strong exports versus rains in Argentina keep market fairly stagnant
- Cash basis improves and farmers have ceased selling
- Ethanol productions for last week avg 957K barrels per day, down 3.43% from last wk
SOYBEANS
- Jan up 1 @ 11.85 & Nov down 2 @ 10.63
- Funds net buyers 7K contracts – O/I +3,100 contracts
- Argentine grain inspectors still continue to strike
- NOPA Nov crush of 181.2 mb – greater than expected – largest Nov crush on record
- NOPA soymeal exports of 1.082 mt – also largest since 2013
- Stocks expected to tighten even further below current 175 mb – another run for $12 seems likely
WHEAT
- Mar CHI down 9 @ 5.90, March KC down 10 @ 5.56, March MPLS down 4 @ 5.64
- Funds net buyers 3K contracts of SRW wheat – O/I -1,300 contracts
- Yesterday’s wheat tender by Egypt went 100% to Ukraine/Romania – none to Russia
- Drought driven, Ukraine grain exports are 23.8 mmt compared to 27.7 mmt last year
- Lack of snow cover in the Plains furthers concerns about La Nina & drought in US
CATTLE
- Feb LC up 0.17 @ 113.05 & Jan FC down 0.35 @ 139.75
- Cattle pressured by cash cattle & boxed beef prices
- Feeders pressured as corn trades positive for 4th day in a row
- Cattle on Feed report Friday @ 2:00 p.m CT
- Today’s slaughter est. at 120K head
- No cash price developed for LC & @ 136.69 (up 0.12) as of 12/14 for FC cash index
- O/I: -34 contracts for Feb LC & O/I: +218 contracts for Jan FC
HOGS
- February Hogs down 1.72 @ 64.72 & Feb Pork Cutout down 1.07 @ 75.20
- Lack of stability in pork prices may lead futures lower
- Markets are hyper-focused on direction of pork cutout values
- Hog slaughter estimated at 483K
- Cash lean index @ 65.06 (up 0.10) for 12/14
- O/I: -457 positions for hogs & pork cutout futures + 25 positions
Author
Amberlee Bratcher