Market Closes - February 7, 2022Posted on Feb 7, 2022
Corn Mar +15 635 (625-37); Jly +15 634; Dec +7 581
Bean Mar +28 1582 (1565-89); Jly +26 1580; Nov +20 1416
Meal Mar +9 453 (446-54); Dec +5 402
Oil -2 6534
Wheat Mar +5 769 (760-76); Jly +9 770 (762-75)
KC Mar +6 792; MGE +8 921
Oats +5 736
Rice +17 1545
LC Feb -22 14182; Apr -47 14640; Jun -27 14110
FC Mar -107 16502; May -62 17472; Aug -32 18460
LH Feb +67 8770; May +115 10482; Jun +95 11037
Milk Feb +7 2077; Mar +25 2191
CBOT futures closed strongly higher, led by the soybean market. By the close, old-crop corn actually posted the strongest gains on a percentage basis. CBOT futures gapped higher when markets opened Sunday evening due to a downgrading of South American rainfall and the extended outlook. Prices were supported by ideas the South American crops may shrink even more and additional export business will come to the U.S. Corn futures closed at/near the day’s highs and new-crop corn contracts made new contract highs and high closes. Soybean futures set new contract highs as well. Wheat futures were supported by the corn/bean market rally, dry soils in the Plains, and the ongoing Russia/Ukraine standoff. USDA will update its World Supply-Demand Estimates Wednesday at 11 a.m. CST.
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Cattle futures closed lower with nearby feeder futures hit by the CBOT rally. Live Cattle made new contract highs by late morning but sold off into the close. After a 8-9 day rally, LC have now moved sideways for the last three. Continued weakness in boxed beef may be weighing on the market given a lack of negotiated cash trade in fed cattle so far this week. Choice beef dropped .85 to 278.96 and Select lost 1.01 to 275.04. Beef movement was a disappointing 80 loads.
Lean hog futures closed higher with April-forward LH contracts setting new contract highs. LH was supported by strong cash fundamentals, a strong pork cutout and bullish momentum on the charts. Based on the RSI, LH futures are “overbought” and due for a correction, but that’s been the case for the last $4.00 of higher prices. FOB Plant Pork ended up .78 at 98.19, lower than the morning quote of 101.47. Strong morning gains in the values of hams and bellies evaporated by the afternoon. Pork movement was a strong 337 loads; this follows Friday’s 201 loads.
US$ steady 95.43
Dow +1 35091
SP -17 4484
NAS -82 14016
Tran -21 15193
VIX -.36 22.86
WTI -99 9132
Brent -58 9269
Gas +1 269
NG -34 423
HO -2 286
Gold +14 1822
Slvr +60 2308
2-yr -.028 1.294%
5-yr -.021 1.767%
10yr -.013 1.919%
30yr -.015 2.218%
USDA Offers Deferral Option for Farm Storage Facility Borrowers
To assist Farm Storage Facility Loan (FSFL) borrowers experiencing financial hardship from the pandemic and other challenges in production agriculture, USDA’s Farm Service Agency (FSA) is offering a one-time annual installment payment deferral option. No fees or prepayment penalties apply for borrowers who choose this FSFL loan flexibility option. Eligible borrowers can request a one-time only annual installment payment deferral for loans having terms of three, five, seven or ten years. The installment deferral option is not available for 12-year term loans.
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