This week’s action:
Corn Mar up 11 @ $6.78
Beans March up 37 @ $15.24
KC Wheat Mar up 13 @ $8.87
Feeders Mar down 15c @ $186.025
Fats Feb down 17c @ $157.925
Hogs Feb down 15c @ $87.975
Crude Feb up 88c @ $80.44
Corn Dec23 up 9 @ $6.10
Beans Nov23 up 23 @ $14.17
KC Wheat July23 up 24 @ $8.76
2022 was an exciting time in all commodity markets: Russian invasion of Ukraine/Inflation/South American drought/Western Corn Belt drought which led to near record basis levels. It’s been a wild ride! We finish the year on a strong note with corn getting back to $6.80/bu which was the spring and summer average price and soybeans rallying back to north of $15/bu. Outlook for the start of the year will focus on the January stocks report and continued focus on South American weather. We are also approaching the crop insurance revenue guarantee pricing period which is the average price throughout February.
Live cattle finish the year putting in new highs with February cattle $159/hd weight. Next December is knocking on the door of $165/hd weight. Last week’s Cattle on Feed report was relatively neutral to bearish vs the estimates.
Drew Lerner, senior ag meteorologist at World Weather says in January, La Niña will be on its way out, paving the way for a potential neutral pattern. This shift will bring wetter weather to the Great Plains and western Corn Belt in February and March, with some relief in late January.
Something that Probably Means Nothing:
Lumber is down from $800 board foot on May 1 to $383 board foot now.