CORN
- Mar corn up 7 @ 6.13
- Dryness continues across key parts of South American growing regions
- China stated that they are going to stimulate their economy – this may help their import demand of commodities
- Corn gapped higher on the opening last night
- Brazilian corn prices are at the highest level since August
- Ethanol margins remain high
SOYBEANS
- Jan soybeans up 24 @ 13.56
- Soybean meal is near contract highs
- Despite recent dry weather, Brazil’s soybean harvest is looking to be record-large
- US received snow in Wisconsin, North Dakota, and Minnesota
- Soybean inspections are down 21% from last year
- Crush margins remain high
- Soybeans are overbought technically but can remain that way in periods of strong uptrend
WHEAT
- Mar wheat up 2 @ 8.17, Mar KC up 1 @ 8.63, Mar MNPLS down 4 @ 10.29
- The 2 week US forecast has some rains in the southern Plains but overall drought remains a concern
- Reports that Russian troops are being removed from the Ukraine border
- The Buenos Aires Grain Exchange raised Argentina’s wheat production to 21.5 mmt
- There is still talk that Ukraine may restrict wheat exports
- Russia’s wheat export tax is now over $94 per metric ton
CATTLE
- Feb LC down 0.300 @ 139.325 & Mar FC down 0.725 @ 163.025
- Cattle on Feed report was mostly neutral
- On feed numbers were at 100%, placements were at 104%, and marketings were at 105%
- Cash cattle closed steady last week
- Choice cuts up 1.08 and select up 2.12
- Cattle slaughter projected at 119K
- CME Feeder Cattle Index for 12/23: up 0.03 @ 160.28
HOGS
- Feb hogs up 0.700 @ 83.925 & Feb pork cutout up 0.650 @ 93.775
- Hogs and Pigs report was neutral to friendly
- All hogs total at 74.201 million head (down 4% from last year)
- Hogs kept for marketing at 68.021 million head (down 4% from last year)
- Packers may be less aggressive this week due to slaughter not being at full capacity during the holidays
- National Direct Afternoon report decreased 0.56
- Hog slaughter projected at 475K
- CME Lean Hog Index for 12/27: down 0.66 @ 71.67
Author
Brandon Doherty