Ag Market Commentary

Corn futures saw most contracts 2 to 3 3/4 cents lower on Friday, with nearby March eking out a 1/2 cent gain on the week. A report overnight shows that China canceled 4 cargoes of US corn in January, as they look to source non-GMO corn for processing. They switched those cargoes to Ukraine origin, a country that does not use GMOs. Spec traders in corn futures and options reduced their net short position by 48,018 contracts during the week of Feb 6. That CFTC position was at -82,924 contracts on Tuesday. South Korea purchased 202,000 MT of corn on Friday, with the origin likely the US or South America.

Mar 18 Corn closed at $3.62, down 3 3/4 cents,

May 18 Corn closed at $3.69 3/4, down 3 1/2 cents,

Jul 18 Corn closed at $3.77 1/2, down 3 1/2 cents

Sep 18 Corn closed at $3.84 1/4, down 3 cents

Soybean futures settled the Friday session with most contracts 3 to 5 cents higher. Meal futures were up $2.10/ton, with nearby soy oil 25 points lower. Nearby March soy meal gained 3.74% on the week over concerns of the Argentine soybean crop. This afternoon’s CFTC Commitment of Traders report indicated that money managers were net short 9,978 contracts as of Feb 6. That is an +11,871 contract move from the previous week. AgRural estimates that the Brazilian soybean crop is now 10% harvested, lagging last year’s 19% and the average of 12%. Most of the progress has been made in the state of Mato Grosso, at 30% complete, with Parana only 1% harvested vs. the average of 16%.

Mar 18 Soybeans closed at $9.83, down 4 3/4 cents,

May 18 Soybeans closed at $9.93 1/2, down 5 1/4 cents,

Jul 18 Soybeans closed at $10.03 1/2, down 4 3/4 cents,

Sep 18 Soybeans closed at $10.00 1/4, down 4 3/4 cents,

Mar 18 Soybean Meal closed at $343.80, up $2.10,

Mar 18 Soybean Oil closed at $31.96, down $0.25

Wheat futures finished the day with most contracts 7 to 9 1/2 cents in the red. Spec funds were shown reducing their CFTC net short position 13,369 contracts during the week of 2/6, to a net position of 83,394 contracts in CBT wheat futures and options. In KC wheat futures and options, they flipped their net position 17,054 contracts to a net long position of 15,157 contracts. Egypt’s GASC purchased 360,000 MT of wheat in their recent tender on Friday, with 4 cargoes sourced from Russian and 2 from Romania.

Mar 18 CBOT Wheat closed at $4.49, down 7 1/4 cents,

Mar 18 KCBT Wheat closed at $4.65 1/2, down 9 cents,

Mar 18 MGEX Wheat closed at $6.03 1/2, down 9 1/2 cents

Live cattle futures ended the Friday session with most contracts 10 to 40 cents lower, as nearby Feb was 75 cents higher. Feeder cattle futures were 27.5 cents to $1.05 lower. The CME feeder cattle index was down 43 cents on February 8 at $147.59. Wholesale boxed beef values were lower on Friday afternoon. Choice boxes were down $2.01 at $206.52, with Select boxes $1.05 lower at $202.74. The Ch/Se spread had narrowed down to $3.78. Estimated FI week to date cattle slaughter is 591,000 head through Saturday. That was down 20,000 from the previous week on lighter Saturday slaughter, but 12,000 head larger than the same week last year. Cash trade was slow to develop, but some $125-126 trades were popping up late on Friday, with $200 reported in Nebraska.

Feb 18 Cattle closed at $126.525, up $0.750,

Apr 18 Cattle closed at $123.625, down $0.100,

Jun 18 Cattle closed at $115.425, down $0.100,

Mar 18 Feeder Cattle closed at $146.200, down $1.050

Apr 18 Feeder Cattle closed at $147.750, down $0.900

May 18 Feeder Cattle closed at $148.325, down $0.600

Lean hog futures were 22.5 to 90 cents lower on Friday, dropping 2.69% on the week. The CME Lean Hog Index on February 7 was at $75.63, up 25 cents from the previous day. The USDA pork carcass cutout value was $2.48 lower at $74.44 in the Friday PM report. The loin and picnic cuts were the only reported higher, with the belly primal down a sharp $12.67. The national base hog weighted average price was up 22 cents at $69.72 Friday afternoon. The USDA estimated FI hog slaughter at 2,389,000 through Saturday. That is down 49,000 head from the previous week but 29,000 head more than the same time last year.

Feb 18 Hogs closed at $73.175, down $0.225,

Apr 18 Hogs closed at $68.850, down $0.600

May 18 Hogs closed at $74.775, down $0.250

Cotton futures closed the day with gains of 6 to 35 points. This afternoon’s CFTC commitment of Traders report shows managed money lowering their net long position by 14,489 contracts during the week that ended 2/6. That position in cotton futures and options was at 81,887 contracts on that date. The total for unfixed call sales was at 145,343 contracts as of 2/2. A total of 10,973 contracts were priced for March during that week, as there were 17,932 contracts still unfixed as of 2/2. The USDA Adjusted World Price or AWP was updated to 69.45 cents/lb this morning, which was down 195 points from the previous week. The Cotlook A index on February 8 was 86.70 cents/lb, down 25 points from the previous day.

Mar 18 Cotton closed at 76.680, up 6 points,

May 18 Cotton closed at 77.630, up 7 points

Jul 18 Cotton closed at 78.580, up 8 points

Market Commentary provided by:

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