Afternoon Market Highlights


Highlights

The corn and wheat markets stayed pretty close to even on a lack of fresh news (positive or negative). The bean market staged a nice rally as the session went on. The market awaits any signs of a resolution to the ongoing rift between the US and China. Many areas of the US are bracing for the frigid temps this weekend and into next week. The highs next Tuesday and Wednesday at our office will be NEGATIVE 7.  BRRRRR

 

  • Energy markets were mostly higher with crude oil trading up $.50 to $53.70/barrel.

  • The US$ is .77 lower at 95.83 and gold is up $18 at 1300.

  • The DJIA is up 150 at 24704, S&P up 20 at 2661 and the NASDAQ up 78 at 7151.

 

Corn

The corn market ended up with a small gain despite posting a lower open.  Trading ranges were 4-5 cents. With the small gains today, the March contract is finally above the convergence point for the 10, 20, 50 and 100 day moving averages around the $3.78 level. Closes: March at $3.80 ¼, up 3 ¼ cents, July at $3.96 ½, up 3 cents, and December at $4.03 ¼, up 2 ½ cents.

 

  • The International Grains Council raised world corn production by 3 million tons to 1.076 billion.

  • Brazil’s safrinha corn crop is about 7% planted in Mato Grosso.

  • More private estimates are showing an additional 3 million corn acres next year.

  • Spreads: H/K 8 ¼ carry, K/N 7 ½ carry, N/U 2 ¼ carry, U/Z 4 ½ carry, Z/H 8 ¾ carry.

 

Oilseeds

The soybean market traded higher on crop worries in SA with forecasts keeping rains limited. Closes: March at $9.25 ¼, up 9 ¼ cents, July at $9.51 ¾, up 9 ¼ cents and November at $9.64 ¼ up 7 ¾ cents.

 

  • The International Grains Council lowered world soybean production by 4 million tons to 363 million.

  • Brazil’s soybean harvest is estimated to be 10-12% complete.

  • Concerns continue to mount about SA crop losses due to adverse weather conditions. Brazil’s 2nd major producing state (Mato Grosso) looks to trim their production by 2-3 tonnes from drought-like conditions, along with their 3rd largest producing state (Rio Grande do Sul), where it has been too wet.

  • Spreads: H/K 13 ¾ carry, H/X 39 carry, K/N 13 carry, N/X 12 ½ carry.

 

Wheat

The wheat market traded lower on a lack of fresh news. Price action was choppy as the market couldn’t sustain any rallies to keep prices in the black for the day.  March closes: Mpls at $5.74 ¾, down 1 ½ cents, KC at $5.09 ½, down 1 ¼ cents and Chicago at $5.20, down 1 ½ cents.

 

  • The next 7 days has some very frigid temps are expected to raise concerns about the winter wheat crop. Some areas may not have enough snow cover to protect the crop form potential damage with temps dropping down way below zero.

  • Spreads: Mpls H/K 2 carry, Kansas City H/K 9 ½ carry and Chicago H/K at a 7cent carry.

  • Mpls premium over KC sits at 65 cents in the March.

 

Livestock

The livestock market was mixed.  The cold weather moving through the US weighed on prices, with supported from stronger packer margins and product values.

Live cattle closes: Feb at $126.05, up 70 cents, April at $126.80, up 32 cents and June at $116.575, down 42 cents. Feeder cattle closes: March at $143.625, down 70 cents, May at 145.05, down 52 cents and August at $149.30, down 42 cents.

The hog market traded lower on weakness in cash and products. Closes: Feb at $58.375, down $1.40, April at $62.125, down $1.45 and June at $77.15, down $1.25.

 

  • Packer margins: beef at $67.50 versus $27.45 last week and pork at $24.00 versus $29.90 last week.

  • Today’s slaughter is estimated at 116k head for cattle and 473k head for hogs.

  • AM boxed beef values on 63 loads: Choice at $217.40, down 35 cents and Selects at $212.29, up 15 cents. The C/S spread was last at $5.11 versus $4.86 last week.

  • AM pork product values on 143 loads: Carcass cutout at $68.09, up 82 cents, loins at $66.42, up $1.13, ribs at $126.64, down 33 cents, hams at $47.31, up 75 cents and bellies at $122.91, up 3.30.