Morning Highlights


 

Highlights

  • Coronavirus continues to spread, with reports this morning of over 4,500 cases and just over 100 deaths in China.
  • Lean hog and live cattle futures will have expanded limits of $4.50 per cwt today and feeder cattle futures will have expanded limits of $6.75 per cwt. This follows sharp losses yesterday, as the market fears what impact the virus could have on demand.
  • Last trading day for January feeder cattle futures and options is Thursday, January 30th.
  • Brazil’s JBS, a meatpacker, announced that they had signed a memorandum of understanding with Hong Kong’s WH Group to supply up to $717 million worth of fresh beef, poultry, and pork to the Chinese market.
  • Outside markets as of 7:00 AM Central: March crude oil at $53.40 up $0.25 per barrel; US Dollar Index at 98.062 up 0.106, February gold down $5.60 at $1,571.80, Dow futures up 122 points at 28,603.

 Corn

  • Corn traded both sides overnight and is near the middle end of its 4-cent trading range currently.
  • A well-respected crop scout left both his Brazilian and Argentine corn crop estimates unchanged at 100.0 million tonnes and 47.5 million tonnes respectively.
  • EU corn imports were 12.59 million tonnes for the current marketing year versus 13.47 million tonnes in the prior year.
  • South Africa’s Crop Estimates Committee is predicting that 2.5 million hectares of corn will be planted this year versus 2.3 million last year.

 Outlook:  Near unchanged, drawing on uncertainty

 Oilseeds

  • Soybeans were weaker overnight, drawing on continued fears of the Coronavirus. Additionally, the market is disappointed after having the U.S.-China deal signed, we haven’t seen China step up to make large purchases.
  • Soy oil had sharp losses in the overnight session, taking the lead from palm oil. This also added pressure to the soy complex.
  • Malaysian palm oil was down 286 ringgits on the April contract, settling at 2,575 ringgits.
  • A well-respected crop scout left both his Brazilian and Argentine soybean crop estimates unchanged at 122.0 million tonnes 50.0 million respectively.

 Outlook: Weaker, as the market continues to remain uncertain about Coronavirus

 Wheat

  • The wheat markets were mostly lower overnight. March Chicago continues to hold above it’s 20-day moving average at $5.65 ¼, whereas Kansas City fell below its 20-day moving average at $4.87 ½.
  • India’s wheat output is estimated to rise 6.3% to 109 million tonnes according to the National Collateral Management Services.
  • Reports suggest that Jordan has received offers from 4 companies in their tender for 120,000 tonnes of wheat. A purchase has not been announced at this time.
  • Soft wheat exports from the EU in the current marketing year were at 15.94 million tonnes versus 9.44 million tonnes the prior year.
  • Syria issued a tender for 200,000 tonnes of soft wheat from Russia, with a tender deadline of February 17th.

 Outlook: Weaker across the board, drawing on continued virus chatter