The market gets started with a shortened trading week. There was no trade on Monday in the US in observance of Martin Luther King Jr. Day.
The outside equities may have to trade on more stimulus hopes rather than hard data. Tuesday offers no major data releases and President Elect Biden’s Treasury pick, Janet Yellen is expected to make her pitch for the $1.9 trillion dollar stimulus plan to the Senate during her confirmation hearing. President Elect Biden will also be sworn into office on Wednesday.
As for the grain market the Monday overnight trade saw significant pullback in the soybean complex. Meal, oil and soybeans were down nearly 1.5% on most contracts. The pullback comes as weather patterns temporarily improve over parts of Argentina and Brazil. Although a La Nina pattern still seems to be in place over equatorial pacific waters the moisture may be short lived. Harvest is getting underway on the early planted soybeans in Mato Grasso, but the pace is extremely slow. The five year average has harvest pace around 5% complete however it’s estimated only 1% of harvest is complete. Still Stone X analysts believe that Brazil can have 1 MMT of new crop beans to the port for shipment by the end of the month.
Cash trade in the country last week developed on Wednesday following the Fed Cattle Exchange. The South saw trade at $110 to $111, the $111 was early but has been backed down to $110, $1 to $2 lower than last week’s weighted averages.
For the week ending January 09, 2021, Imported Beef Passed for Entry in the U.S. totaled 34,280, 133.91% of the previous week and 109.63% of the 4-week average.
Expected Slaughter numbers Tuesay
118,000 hd today 118,000 hd wk ago 124,288 hd yr ago
495,000 hd today 496,000 hd wk ago 496,032 hd yr ago
Midday Carcass Value Tuesday
Choice up 2.60 217.64
Select up 0.12 205.96
C/S Spread 11.68
Carcass up 0.07 78.59
Bellies dn 11.33 108.05
- Kansas City
- Livestock Settlements
- Live Cattle
- Feeder Cattle
- Lean Hogs
- Class III Milk
Pre-Opening Market Broker Commentary
Mark Gold, Top Third Ag Marketing, believes grains are due a pullback and it could be happening now.
Jerry Stowell, Country Futures, looks at what may impact the livestock futures today. Livestock will try to rally buyers to create follow through from last Friday.
Mike Zuzolo, Global Commodity Analytics, takes a look at the midday trade. Grains continue to selloff as the market realizes possible demand issues.
John Payne, Daniel’s Ag Marketing, takes a closer look at today’s grain close. Payne is not concerned with the recent pullback in grains. The long term picture is still inflationary and bullish.
Jack Fenske, York Commodities, looks at the closing market numbers.