Afternoon Market Highlights


Highlights

· The US dollar index was weaker again today, down 0.503 points at 91.829.

· The DJIA was stronger today, up 142 points to 25,511.

· Crude oil was stronger yet again today, up $0.32 at $63.89.

· The January USDA WASDE, Grain Stocks and Winter Wheat Seedings report are due out tomorrow at 11:00 AM CST.  

· CHS Hedging is offering Grain Hedging classes on January 31st and Energy Hedging classes on February 1st, to register please visit us at chshedging.com.

· Due to Martin Luther King Day, grain markets will be closed Sunday night and Monday during the day. Trade starts back up Monday evening. CHS Hedging will be closed Monday, with an order intern here from 8am-Noon.

Grains and Oilseeds:

Corn

Corn was stuck in range bound trade and closed nearly unchanged as the March contract settled down ¼ cent at $3.48 ¾, the May was unchanged $3.57, the July was up ¼ cent at $3.65, and the December contract closed up ¼ cent at $3.82 ¾.  

Current spreads: H/K 8 ¼ ¢ carry, K/N 8 ¼ ¢ carry, N/Z 17 ½ ¢ carry.

· Cold weather across the US seems to be posing a problem for US ethanol makers. With an increase in production costs, due to higher natural gas prices, ethanol production has seen a decline in the last 4 of 5 weeks.

· Corn export sales were reported at 437,800 metric tons, in line with estimates between 350,000-650,000 metric tons.

· CONAB raised Brazil’s corn crop estimate marginally to 92.3 million metric tons. The Argentina corn crop was estimated at 39.9 million metric tons down from 41.5 million metric tons.

· The European Union reported 7.9 million tonnes of maize imports as of January 9th, compared to 5.4 million tonnes through January 9th last year.

· South Africa continues to be dry, with few scattered and small rains the next 2 weeks. This period of stress on the corn crop comes right before early corn pollination.

Oilseeds

March Soybeans put in lows not seen since late Aug as large supplies confirmed by South American estimates for 2017-2018 crop, weighed on the market today as traders prepare for the report tomorrow. March soybeans closed down 6 cents to $9.50, May beans were down 5 ½ cents at $9.61, July soybeans closed down 5 ¾ cents at $9.70 ½, and November soybeans closed down 2 ½ cents at 9.71 ½.

Current spreads: H/K 11 ¼ ¢ carry, K/N 9 ¼ ¢ carry, N/X 1 ½ ¢ carry.

· CONAB reported estimates for the Brazil 2017-2018 soybean crop at 110.4 million tonnes up from 109.2 million tonnes last month. Another private analyst pegged Brazil’s soybean crop at 114 million tonnes up from 112.9 million tonnes. Average trade estimates for tomorrow’s report are 111-112 million tonnes.

· Rosario’s Grain Exchange reported Argentina soybean production at 52 million tons, down from 54.5 million previously, due to drought concerns in the Salado River basin, one of Argentina’s most productive areas. Although, rain is expected in most of Argentina’s corn and soy areas in the next 10 days.

· The USDA reported export sales at 607,400 metric tons, near the low side but within expectations between 500,000-850,000 metric tons.

· US exporters sold 132,000 metric tons to unknown destinations for the 2017-2018 marketing year.

· Soymeal futures ended lower today, as March was down $3.30 to $313.10 while soybean oil was weaker today with March down 0.30 cents to 33.15 cents.

Wheat

Chicago wheat traded 1 -1 ¾ cents lower, Kansas City traded unchanged to ¼ cent higher and Minneapolis trade was 1 ¾ - 5 cents lower. The Minneapolis premium over KC and Chicago is $1.88 ¾ -1.95 ¾ for March contracts and $1.81 ½ - 1.88 ½ for May contracts.

Current Spreads: Chicago H/K 13 ½ cent carry, KC H/K 13 ¼ ¢ carry, Mpls H/K 6 ½ ¢ carry, Mpls K/N 3 ¾ ¢ carry.

· The wheat complex traded lower due to disappointing exports at 71,500 metric tons, compared to estimates at 250,000-450,000 metric tons and only 130,963 metric tons of sales last week.

· Trade expects the USDA report tomorrow to say winter wheat seedings have decreased, again, to 31.5 million acres. If this expectation is realized it will be the fewest winter wheat seeded acres since 1909. Winter wheat seedings have fallen for the last 5 years.

· The European Union awarded all 1.035 million tonnes of duty-free Ukrainian wheat today after there were many more bids than volumes available for offer.

· Japan bought some US and Canadian wheat in their tender. They bought 15,714 tonnes of spring wheat, and 16,710 tonnes of soft white wheat and 24,525 tonnes of hard red winter wheat from the US, as well as 34,106 tonnes of Canadian spring wheat.

Livestock

Cattle markets were lower today as February cattle settled down $0.075 at $116.80 while April cattle were down $0.025 at $118.60. Feeder cattle traded lower today, as March closed $0.85 lower at $141.375 and April losing $0.50 to $141.85.

·USDA reported daily cattle slaughter at 118,000 head, up 5,000 head from a week ago and even from a year ago today.

· Beef packer margins came in at $69.55/head.

· Boxes were mixed today as Choice traded down to $208.89 down $1.17 and Selects were up $0.57 at $203.80.

Lean hogs were lower today as the February contract traded $1.70 lower to settle at $70.825 while the April contract traded $1.975 lower at $73.80.

·USDA reported daily hog slaughter at 436,000 head, up 18,000 head from a week ago and down 2,000 from a year ago today.

· The Iowa/Minnesota Daily Direct Hog Report stated a weighted average price of $70.23 up $0.21 from Wednesday.

· This morning’s carcass values were $1.12 lower at $78.33. Bellies were $6.36 lower at $123.71 with 151 loads traded.

· Pork packer margins came in at $12.65/head.