Tonight’s Futures Closes:

(Futures contracts highlighted in green were the bull leaders today; futures prices highlighted in red were the bear leaders today.)

Mar 18 Corn $3.6175 +0.25 Mar 18 Soybeans $9.85 -10.75

Mar 18 CH Wheat $4.51 -0.75

May 18 Corn $3.70 +0.5

May 18 Soybeans $9.965 -10.5 July 18 CH Wheat $4.78 -1.0

July 18 Corn $3.7775 +0.5 Jul 18 Soybeans $10.06 -10.25

Mar 18 KC Wheat $4.67 -0.25

Sep 18 Corn $3.85 +0.5 Aug 18 Soybeans $10.08 -10.0

July 18 KC Wheat $4.9775 +0.25

Dec 18 Corn $3.9325 unch Nov 18 Soybeans $10.045 -6.75 Mar 18 MN Wheat $6.1175 +4.5

Mar 18 Oats $2.6725 +1.75 Mar 18 Rapeseed $494.3 -2.4 Sep 18 MN Wheat $6.285 +3.25

Dec 18 Meal $336.2 -2.9 Mar 18 Cotton $78.35 +1.07 Mar Dollar Index 88.515 -0.439

Dec 18 SB Oil $33.66 -0.11 May 18 Cotton $79.45 +1.09 Apr Crude Oil $65.54 +0.98

Apr 18 Cattle 125.925 +3.000 Dec 18 Cotton $75.42 +0.91 Apr Gold $1349.3 +6.2

Mar 18 Feeder

150.125 +4.275 Jan 18 Rice $1240.5 -3.5 Mar S&P 2824.00 -1.80

Apr 18 Hogs 72.825 +0.575 Nov 18 Rice $1183.5 +1.0 Mar Dow Jones 26163 +27

Thursday, February 1, 2018

Cotton futures gained back some of their

recent loss today, while soybeans continued

to retreat from their latest run over $10.00.

Very disappointing weekly soybean sales of

only 359 tmt coupled with (possibly) better

rain chances in Argentina brought on more

selling. GSC’s Diana Klemme wrote today:

“Argentine weather forecasts seem to have

something for everyone. Some forecasters see

rains coming, but a ways out, some see

continued hot/dry, some see rains but not in

the key areas. One thing is for sure: Buenos

Aires Grain Exchange lowered their soybean

crop projection today from 54 mmt to 51 mmt

citing drought as the reason for the

reduction.” The flip side of this drop was FC

Stone raising their estimate for Brazil’s

soybean crop 1 mmt to 111 mmt. There have

been other analysts projecting that crop in the

112-114 mmt range. These compare to last

year’s record crop of 114 mmt. The bottom

line: it’s going to be difficult to sustain bad

enough weather in South America to hurt that

crop enough to turn the soybean market

bullish.

Corn posted a very strong export sales

number of 1.850 mmt last week. “Unknown”,

which often becomes China, was the largest

buyer last week. With new sales this week to

Egypt & Spain, things are looking up for corn

demand. The weaker US $ has got to be

helping. Corn futures traded lower most of

the day today in sympathy with soybeans, but

managed to claw back to flat for the 2nd

straight close. Wheat did the same, with KC

wheat adding a little premium back (see

updated Drought Monitor next page).

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Today’s updated Drought Monitor showed more increase in severity in the Upper Midwest and Western Corn Belt. Drought now

covers 47% of US winter wheat area, up 3% this week. By comparison, drought only covers 16% of the Corn Belt, but that %

seems to be getting a little larger.

Southern states are now a couple days past half way, while northern states today began setting crop insurance averages for 2018

spring crops. It wasn’t a great day for soybeans to retreat, though corn & spring wheat did OK.