Corn – Maps still dry ARG spilling support over to corn, did we see end of year cash selling yesterday?
↑ ARG 10 day maps are still on the drier side which is still causing bean support and spilling some of
that support over to the corn market
↔Yesterday showed signs of what have might been end of year cash selling, that would explain the
overnight support that didn't follow through to the day session, it is possible to see that again today
↔The COT report showed funds buying 1500 corn, this was likely smaller than expected
↑ Very early estimates of the January crop report are likely expecting another small carryout decline as
exports and ethanol continue to run slightly ahead of USDA pace and a chance for a small yield decline
Beans – ARG 10 day maps are still on the dry side, still catching overnight support, funds buy 8K
↑ ARG 10 day maps are still on the dry side, this will continue to supply at least light support
↔Yesterday may have seen a brief rush of cash selling going into end of year, if ARG maps remain dry
then support from the maps will likely overtake cash selling resistance
↑ Yesterday’s COT showed funds as buyers of 8K, supportive but likely smaller than expected
↔March moved above $10 Friday but in general that is still the level of over all stronger resistance
Wheat – More easily following other markets higher but not likely to rally on its own yet
↑ The 625K exports from last week may be strong enough to continue allowing wheat to follow other
markets higher but not yet strong enough to suggest a rally of its own
↔Morning maps still have cold in the HRW forecast days 9 – 11 but not quite as extreme as yesterday
Cattle – Mixed news to start the week, BB higher, feeder index lower, showlist +19K, funds sellers
↔Yesterday’s PM BB was choice +2.99 select +3.63 packer BE at 196.98, packer cushion $3.91
↑ BB continues higher and has packer profits back up near $4
↓ The feeder index is still moving lower and accelerating lower, yesterday was -$4.35
↔Showlist is +19K, maybe slightly bearish but showlist numbers have not had a major effect lately
↓ Funds were sellers of 6K on yesterday’s report, one selling week doesn’t stand out but, like hogs,
could start to catch more attention if that turns into 2 – 3 weeks of long liquidation
↔While we still follow BB closely we need to keep in mind that no one in trade forgets it was a
turnaround on the feeder index which sparked a $30 setback last year, the index will be watched closely