Tag Archives: Chicago Wheat

Summary

Grains ended the day trade mixed with corn settling close to it’s highs. Soybean and wheat closed in the red, but off of their lows. Outside markets were able to maintain most of their gains, but had come slightly off their earlier day highs.

Overall virus fear selling seemed to pump the breaks, but is in teh back of traders minds. The latest news from China says the Corona Virus has killed 106 mostly the elderly and children. The Chinese government is extending the Lunar New Year holiday to try an curb the spread of the virus.

USDA is reporting a sale of 124,355 MT of corn sold to Mexico Tuesday morning.

USDA is reported sales of 142,428 MT of corn sold to unknown on Monday.

USDA also reported a sale of 111,252 MT of corn sold to Japan for the 2020-2021 marketing year on Monday.

USDA released grain inspections Monday. Wheat disappointed traders falling below analysts estimates at 223,994 MT. Japan was the top destination with 82,000 MT. Ecuador and Mexico were also top destinations for US wheat.  Corn exports totaled 668,559 MT and soybean exports totaled 1.04 MMT both within analysts estimates. China was listed as buying 486,000 MT of soybeans.

Brazilian farmers have completed 4.2% of soybean harvest as of last Friday according to AgRural an agriculture consultant company. That is about 9% behind where they were a year ago due to rains in Mato Grasso. While rain is delaying the harvest it doesn’t appear to be impacting the quality of the harvest. AgRural expects a bumper Brazilian crop of 123.9 MMT.

USDA-NASS are reporting that North Dakota has only harvested 49% of their corn crop. Based of FSA acreage numbers that would leave nearly 1,747,000 acres of corn in North Dakota unharvested.

US Secretary of Agriculture Sonny Perdue is currently visiting the European Union. His mission is to try and start the conversation on decreasing the ten billion dollar trade deficit with the US. Secretary Perdue will also try to align the US and EU food safety rules to reflect “sound science.”

Despite a cattle on feed report that was neutral and retail meat prices that are similar to those of a year ago all three livestock markets saw limit lower moves in several contracts on Monday. Several analysts point to the tie between the stock market and live cattle market as helping with the sell off. Others point to the possible decreased demand for protein in China due to the Corona Virus.

Livestock will return to normal trading ranges on Wednesday. Live cattle ended in the red. Feeder cattle settled mixed and lean hogs were in the green. Technical selling seems to have hit live cattle as the charts have finally gave some to the bears.

Cash cattle could still be strong this week as packers still appear to be short bought. Asking prices are expected to be established this morning with packer bids coming later in the week.

Retail meat prices are mixed this week. According to USDA data the top 15 cut average for beef is $5.01/lbs compared to $5.44/lbs last week and $4.96/lbs a year ago. Pork 4 cut average is $3.15/lb compared to $3.00/lb last week and $3.14/lb last year. Bacon prices are $4.79/lbs compared to $4.73/lbs a week ago and $4.90/lbs a year ago.  Chicken 3 cut average was $1.56/lbs compared to $1.69/lbs last week and $1.78/lbs a year ago.

The USDA cattle on feed numbers for January were closely aligned with pre-report expectations. Jerry Stowell, Country Futures, said, “If you were looking for a surprising USDA report you are going to have to look else where this report is very neutral.” Listen to Jerry’s full comments below.

USDA Actual Average Estimate Range
On Feed Jan. 1 102% 102.2% 101.6-102.5%
Placed in December 103% 103.2% 100.5-105.3%
Marketed in December 105% 105.2% 103.9-105.8%

 

 

Beef Cutout at Midday Tuesday

Choice dn 0.45 214.04

Select up 0.84 211.54

C/S Spread 2.50

Loads 68

Pork

Carcass up 1.11 78.49

Bellies up 3.46 115.12

Loads 182

 

Cattle Slaughter

122,000 hd today 122,000 hd wk ago 117,171 hd yr ago

Hog Slaughter

497,000 hd today  498,000 hd wk ago  465,595 hd yr ago

Grain Settlements

  • Corn   up 1 1/2 – 6
  • Soybeans dn  2 – 3
  • Chicago Wheat  dn  2 1/2 – 3 3/4
  • Kansas City Wheat dn 4 1/4 – 5

Livestock Settlements

  • Live Cattle dn 0.10 – 0.60
  • Feeder Cattle dn 0.50 up 0.22
  • Lean Hogs up 0.10 -0.85
  • Class III Milk dn 0.13 up 0.07

 Pre-opening Market Broker  Commentary

Mark Gold, Top Third Ag Marketing, discusses overnight grains and what the trade may see today. With the Corona Virus causing risk off feelings in the overnight markets Mark see’s traders putting money in safe havens during the day trade.


Jerry Stowell, Country Futures, discusses factors influencing the livestock trade today.


Mike Zuzolo, Global Commodity Analytics, shares his thoughts on the midday trade factors.


Closing commentary with John Payne, Daniels Ag Marketing, and Jack Fenske, York Commodities.


Special Reports

Jerry Stowell, Country Futures, breaks down the cattle on feed report.