Market Snapshot | February 1, 2022

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Old-crop corn futures are 10 to 12 cents higher at midmorning.

  • Corn futures bounced back from yesterday’s selloff with help from strength in soybeans and wheat. Drought-reduced crop prospects in South America also continue to support prices.
  • Crop Consultant Dr. Michael Cordonnier kept his corn production estimates for Argentina and Brazil unchanged at 51 MMT and 112 MMT, respectively. He holds a neutral to lower bias for both countries.
  • “Brazil’s 2021-22 total corn production is now going to depend on the safrinha (second) crop,” Cordonnier said in a weekly report. “The first corn crop was severely impacted by the drought in southern Brazil and there is now a strong financial incentive to plant as much safrinha corn as possible.”
  • USDA is expected to report corn-for-ethanol use totaled 478.6 million bu. in December, up 9.9 million bu. from November and 46.9 million bu. higher than December 2020, based on a Bloomberg survey of analysts. USDA will release its monthly Grain Crushings Report at 2 p.m. CT.
  • USDA reported daily corn sales of 110,000 MT to Mexico for 2021-22.
  • March corn is trading within yesterday’s range but has climbed near the contract high of $6.42 1/2 reached yesterday before prices fell.

Soy complex futures are broadly higher and led by gains of more than 35 cents in nearby soybeans and over $14 in nearby soymeal; soyoil is up more than 100 points.

Wheat futures are broadly higher, led by gains of 11 to 12 cents in nearby SRW contracts and 12 to 15 cents in spring wheat.

Live cattle futures are mildly firmer and feeders are slightly lower.

Lean hog futures are sharply higher at midmorning after posting more contract highs.

 

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