Hogs

• Lean hog futures continued to break down on Wednesday with the April contract falling through technical support and settling at $93.85 down $1.65. The Jun-Dec contracts lost $1.175 to $1.50.
• The negotiated national average continued to move higher on Wednesday, printing a new high for the current rally of $88.17, up $0.43 from Tuesday.
• The pork cutout was lower on Wednesday at $93.77, down $1.60 as it continues to drift in a sideways price range and is threatening to fall through the bottom of the last 30 days’ range.

February’26 Hogs 

Grains

• Corn futures were mixed on Wednesday. Front month march closed at $4.275 down $0.0125, while the May-Sep contracts were down $0.0075 to up $0.0125. The further out months were stronger than the nearbys.
• The EIA’s weekly ethanol report showed production rebounded last week following weather related slower production the week prior. Last week’s average pace of 1.110 million barrels per day was a record for the calendar week.
• Ethanol exports for November released last Friday showed that month setting a new record for the month of November and 2^nd highest month ever with 5.041 million barrels being exported.
• Soybean futures were modestly higher today continuing to be supported by last week’s statement from Trump regarding possibilities of China purchasing additional US soybeans above the prior expectation of 12 million tons. Additional Chinese purchases don’t seem financially logical with Brazil in the early stages of harvesting what appears to be record large crop.

March’26 Corn 

March’26 Soybeans

Cattle

• Cattle futures were strong on Wednesday with Feb up $3.25 at $242.35 and Apr-Oct gaining $1.80 to $3.55.
• Live bids of $238 to $240 were passed today on the Fed Cattle Exchange.
• Boxed beef prices were lower on Wednesday with choice down $1.63 at $365.92 and the select down $0.32 at 362.58.
• Spot packer margins are approaching record losses on the weakness in the cutout and strengthening live cattle trade. It is likely harvest levels will remain suppressed in this packer margin environment.

February’26 Cattle

Weather

• Light and isolated mixed precipitation is moving through the heart of the corn belt this morning but conditions remain mostly dry today overall; the next major event fires up in the south tomorrow through Sunday, aiding moisture conditions in the southern Plains but mostly affecting the southern and southeastern U.S. over the weekend. The forecast shifts to a drier south but much wetter center-north for both the 6-10 and 11-15 day time frames. Temperatures will hold safely above-normal throughout the next two weeks.
• Argentina was dry over the past 24 hours but decent chances are seen from Sunday through the next week-plus.
• Brazilian rains were scattered north/northeast yesterday with southern crop areas dry, but most crop areas will see a good chance over the next five days; 6-10 day maps move the best rains center-northeast with SW regions dry.