Wheat futures led the grain futures markets overnight on concerns the extreme cold will increase winterkill damage. However, wheat prices have since backed off. Current strength is now in the nearby soybean and soybean meal futures.  These contracts are supported by strong weekly export shipments for last week and by the current cold temps that should increase consumption of meal.  The 1+ percent loss in soybean oil futures limits the gains in soybean futures.

Traders will be preparing for Friday’s USDA crop reports.

Cattle futures are higher in follow-through to last week’s strong market.  The bitter cold will tend to reduce weight gain (beef production) and boost beef values.  However, the bad weather could also keep consumers at home and out of the steak restaurants.

US equities are lower and Treasury values higher on disappointing economic reports in the US and China. The market will receive on Wednesday the FOMC minutes from the last meeting.

Corn Mar +1 424; Jly +1 439; Dec unch 452 Bean Mar +7 1279; Jly +4 1252; Nov -1 1129 Meal Mar +7 414; Jly +5 400 Oil -47 3813 Wheat Mar unch 606; Jly unch 614 (614-20) KC +2 645; MGE unch 631 Oats +6 350 Rice +5 1565

LC Feb +47 13677; Jun +12 13017 FC Jan +67 16830; Apr +47 16942 LH Feb -42 8625; May -15 9855 Milk Jan +3 2009; Feb +15 1983

US$ -.2%

Dow -.2% SP -.3% NAS -.5% Tran -1.2% VIX -.6% 13.68

WTI -.4% Brent -.1% Gas -1.5% NG -.5% HO +.4% Eth +2.8%

Gold +.2% Slvr +.5%

5-yr -.04 1.70% 10yr -.04 2.96% 30yr -.04 3.89%

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