Grain markets were lower in the overnight trade after President Elect Donald Trump brought up potential tariffs on Mexico and Canada. The markets digested that news and finished the day mixed.
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Grain Market Recap
It was a mixed bag in the grain markets today. At the close march corn futures were a nickel lower to settle at 428. January soybeans traded on both sides of unchanged but settled the day 2 ¼ cents lower to 983 ½. March Chicago wheat gained 2 ¼ cents to settle at 558. With the markets closed on Thursday and an abbreviated trading day on Friday, volume and volatility is largely expected to think down into tomorrow’s trade, something to keep in mind.
Monday’s weekly export inspections report for soybeans were reported at 2.1 million metric tons, inline with the range of estimates and just a hair below last week’s report. Inspections of soybeans marked for export from Mississippi River terminals at the Gulf topped 1 million metric tons for a fifth consecutive week last week. Exporters have shipped soybeans from the busiest U.S. grains port at the fastest rate in nearly four years after rain raised water levels in the Mississippi River,
The pickup in barge movement came just as grain merchants are scrambling to move the second-largest U.S. soy crop ever. They want to move inventory before newly harvested Brazilian soy floods the market early next year.
Aside from export data, traders and analysts will continue to keep a close eye on weather developments in South America, with Brazilian soybean planting reportedly 86% complete.
Livestock Market Recap
It was a mostly higher day in livestock markets, with the exception of live cattle, with the front month February contract finishing the day unchanged at 187.70. January feeder cattle added to yesterday’s gains, tacking on another 2.62 to settle at 258.10, the highest close since the first week of July. February lean hogs surged to 88.27, that was 2.35 higher and good enough for a new contract high.
This morning’s boxed beef report was sharply higher with choice cuts 3.85 higher to 313.56 and select cuts 4.37 higher to 278.11. Monday’s slaughter was reported at 120k head, 2k more than last week but 4k less than last year. The 5-area average price for live steers was reported at 186.39 which was firm with what we saw through last week.
The big jump higher in feeder cattle to start the week has come on the back of headlines regarding New World Screw worm, which is fly larva that infest living tissue of warm-blooded animals causing infection. This was detected in Mexico which led to the USDA halting imports of agricultural commodities from that region. This will continue to be monitored closely in the coming weeks.
The big jump higher in feeder cattle to start the week has come on the back of headlines regarding New World Screw worm, which is fly larva that infest living tissue of warm-blooded animals causing infection. This was detected in Mexico which led to the USDA halting imports of agricultural commodities from that region. This will continue to be monitored closely in the coming weeks.