Weekly Newsletter, Jan 9
In this week’s newsletter we take a look at the pace of global corn & wheat trade, and discuss whether the USDA will make any changes in its coming reports.
La Nina & US Winter Wheat Production
Virtually no precip has fallen across the US Southern Plains, including KS and pockets of NE since the middle of autumn. And another two weeks of complete dryness is likely. This, along with bitterly cold temps, has put a bid under HRW wheat prices in recent weeks. ARC notes that winterkill will likely never be…
Afternoon Weather Update
Close Eye Should be Kept on Northern Brazil Rains: The South American forecast is noticeably drier in Northern Brazil in the 11-15 day period, and generally unchanged for Argentina. Forecasts beyond 5-7 days should be viewed with caution, but a close eye needs to be kept Brazilian soil moisture in the weeks ahead. Climate forecasts…
Hogs Finish Higher as Market Takes A Pause to Digest Gains
CME hog futures finished mixed on Tuesday in diminished volume. Traders wanted to take a pause in chasing the market following Monday’s strong rally. Summer hog futures scored new rally highs and closed slightly lower. Futures had become extremely overbought and the market needed a correction. Cash hogs have risen as packers seek supplies for…
Oil Gains on Meal; Funds Add to Short Soybean Position
It was a mixed session for the CBOT soy complex with active oil/meal spreading noted. Soybeans closed slightly lower as funds piled into additional net soybean shorts. ARC estimates that funds are now short 93-96,000 contracts of soybeans, the largest short positon since early July. Soyoil rallied as WASDE is expected to trim its US…
