AgriCharts Market Commentary

Corn

Nearby corn futures are trading higher moving into the midday session. March corn futures were trading higher overnight. NYMEX crude oil futures are trading higher so far, which is supportive to corn, though a higher US dollar trading so far limiting corn’s gains. Spillover support from soybeans adds to crude oil’s bullish push to corn. March corn at $4.15 ¾ , up 4 ½ cents; December corn at $4.58, up 2 ¾ cents

Soybeans

Soy complex futures are trading higher entering the midday session. Though a firming US dollar added bearish pressure to soy complex futures, higher crude oil trading earlier provided bullish support to soy and spillover to corn. Strong Chinese demand for US soy exports provides additional bullish support. Ongoing drier weather in Brazil and Argentina forecasted to maintain yield concerns in South American crop. January soybean at $10.01, up 17 ¼ cents; January soy meal at $300.50, up $1.80; January soy oil at $35.92, up $1.02

Wheat

March wheat futures in Chicago, Kansas City, and Minneapolis are trading higher heading into the midday session. A firming US Dollar Index provides bearish pressure to wheat futures. Wheat futures traded higher overnight and spillover bullish support from soy this morning gives the bull push to wheat. A strengthening stock market so far this session adds more bull support to wheat. March CBOT wheat at $6.30 ½ , up 13 ¾ cents; March KCBT wheat at $6.52 cents, up 9 ¾ cent; March MGEX wheat at $6.70, up 12 ¾ cents

Cattle

February live cattle futures trading higher moving into the midday session. Feeder cattle futures are also trading higher. Strengthening in the stock market so far this session provides bullish support to cattle. A firm US Dollar Index due to news of the upcoming administration’s economic stimulus package limiting slightly the gains on cattle futures though. Morning boxed beef prices: Choice - 145.80, up 83 cents, Select - 136.36, up 72 cents. February live cattle at $88.60, up $1.05; January feeder cattle at $97.70, up 70 cents

Hogs

Lean hog futures are trading higher entering the midday session. A firming US dollar so far this morning continues to add bearish pressure to swine. A steady to stronger cash hog sales and wholesale pork prices provides bullish support to lean hog futures. Improved export expectations of US pork adds to the bull push to swine. The CME lean hog index for 01/02 was 51.87, up 21 points. February futures expired in 39 days. Morning pork carlot prices: loins – 76.53, picnics – 43.20, butts – 56.47, ribs – 93.43, hams – 37.21, bellies – 70.04. February lean hogs at $63.65, up 97 cents

Cotton

March cotton futures trading higher heading into the midday session. So far strength in the stock market and higher crude oil provide bullish support to cotton. A firming US Dollar Index adds limiting bearish pressure to cotton though. March cotton open interest as of close on January 5 was 71,834, up 921. March cotton at 49.71 cents, up 136 points

Market Commentary provided by:

Brugler Marketing & Management LLC
1908 N. 203rd St.Omaha, NE 68022
Phone: 402-697-3623
Fax: 402-289-2353
E-mail: alanb@bruglermktg.com
Web: www.bruglermktg.com