Afternoon Market Highlights


Highlights

  • President Trump is set to speak tonight on the importance of border security at 8:00pm CST.
  • Trade discussions between U.S. and Chinese officials have been unfolding in Beijing since Monday. China released a statement that they are permitting five new GMO crops (two canola varieties, one corn and two soybean) for import. Reports indicated that these trade talks will be extended an extra day through Wednesday, January 9th.
  • The USDA reported that they will extend the deadline to apply for farmer aid payments. The original deadline was January 15th but will adjust based on the number of days the USDA offices were closed from the partial government shutdown.
  • As of 2:30pm, the U.S. $ index is up 26 pts. at 95.93, the Argentine Peso is up 0.78% at 37.56 and the Brazil Real fell 0.60% at 3.71.
  • The weekly EIA Energy Stocks report will be released tomorrow at 9:30am CST.

Corn

  • The corn market followed in sympathy with soybeans on profit taking.
  • Argentina calls for favorable rains in the 6-10 day forecast but too much moisture could negatively affect specific crop regions.
  • March corn settled slightly above the 50-day moving average of $3.79¼ with the next level of support at the 100-day moving average of $3.77¾.
  • March corn closed down 2¼c at $3.80, July closed down 1¾c at $3.95¾ and December 2019 closed down 1c at $4.02¾.
  • Spreads: H/K 8c carry, H/N 15½c carry, H/Z 22½c carry. 

Oilseeds

  • Soybean prices ran out of steam on technical selling after four consecutive sessions of gains.
  • Brazil continues to expect scattered showers across the growing regions this week. Below average precipitation in key growing areas could affect overall production on dryness concerns.
  • March soybeans washed out the gains from yesterday with the next level of support at the 50-day moving average of $9.02¼.
  • March soybeans closed down 5¾c at $9.18½, July closed down 5¼c at $9.43½ and November 2019 closed down 3¼c at $9.57½.
  • Spreads: H/K 13¼c carry, H/N 25c carry, H/X 38¾c carry. 

Wheat

  • The wheat market rose slightly on potential export demand.
  • Tunisia tenders for 100,000 mt of durum wheat.
  • GASC is in for optional origin wheat for LH February/FH March shipment.
  • March Chicago wheat was rangebound from $5.13¾ to $5.24½, finishing just below the 50-day moving average of $5.18¼. Nearby Minneapolis wheat challenged the 50-day moving average of $5.74 before settling slightly below yesterday’s price. March KC wheat hit a high of $5.10¼, edging just below the 50-day moving average of $5.07.
  • March Chicago wheat rose 1c at $5.17¾, Minneapolis March wheat decreased ¾c at $5.67¼, and Kansas March wheat settled 2c higher at $5.05.
  • Spreads: MWE H/K 5¾c carry, KW H/K 11¾c carry, W H/K 5¾c carry. 

Livestock

  • Hog prices rose higher on strong load counts. February hogs surpassed the 200-day moving average of $62.46 with the next level of resistance at the 100-day moving average of $63.97.
  • Pork bellies increased 44c to $138.99/cwt. Carcass prices rose while picnic ham’s fell in the morning report to $70.81 and $37.67/cwt, respectively, on 285 loads. Pork margins fell 30c to $36.05.
  • February lean hogs rose 70c to $62.60 and April decreased 35c to $66.02½.
  • Live and feeder cattle continued the second day of rallies. February live cattle was rangebound from $122.87½ to a new contract high of $125.47½. Nearby feeders settled just above the 200 and 50-day moving averages of $146.89 and $147.08 respectively. The last trading day for January feeders is January 31st.
  • The USDA morning boxed beef highlights showed choice cutouts fell 1c to $214.27/cwt, while selects decreased 11c to $208.10/cwt. Beef margins decreased $5.25 to $53.50.
  • February live cattle closed up $2.10 at $125.30, while January feeder cattle closed up $1.62½ at $147.62½.
  • Today’s estimated hog and cattle slaughter is 480,000 and 119,000 respectively. This week’s estimated total hog and cattle slaughter is 960,000 and 237,000 respectively.