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Corn futures closed 2 to 4 cents lower on the day. The May 14 contract traded up to $5.02 overnight but reversed to the downside and closed down a few cents at $4.89. The CFTC Commitment of Traders report tonight showed managed money added 70,606 contracts to their net long position in corn last week, giving them a net long position of 158,122 contracts. They are buying against farmer selling. The average trade guess for US corn ending stocks in the Monday USDA WASDE report is 1.495 billion bushels, according to a Bloomberg survey. That implies a cut in feed use, but USDA has not cut feed use in the March report in 18 years because they have better data if they wait for the March 31 Grains Stocks numbers.
Soybean futures closed 14 to 20 cents higher on the day. The Mar 14 contract displayed the most strength posted a new lifetime contract high close of $14.57. The contract expires a week from today. As of the close on this past Tuesday, CFTC shows managed money accounts increased their net long position for soybeans from the previous week by 5,497 contracts bringing their overall net long position to 208,493 contracts. A Bloomberg survey put trade estimates for the Monday USDA report at 88.09 MMT for Brazil and 53.6 MMT. The average guess for the US ending stocks number is 144 million bushels in one survey, 141 million in another. Both are assuming a larger export estimate.
Wheat futures closed 4 to 10 cents higher on the day. The thinly traded Mar 14 MGEX contract displayed the most strength and was up a dime. As of the close last Tuesday, managed money accounts decreased their short position in CBT wheat from the previous week by 14,271 contracts bringing their overall net short position to only 6,040 contracts. Paris milling wheat futures were up 6.75 at 2.15. Trader talk is that Iraq bought 200,000 MT of Australian and Canadian origin wheat. The trade average-guess for US wheat ending stocks in the March 10 USDA report is 570 million bushels, according to a Bloomberg survey. According to Reuters, the Canadian government is issuing regulations requiring the two Canadian railroads to move at least 500,000 MT of grain per week in an effort to clear a massive shipping backlog. The railroads have 30 days to ramp up deliveries (which should coincide with better weather) or risk daily fines.
Cattle futures settled $0.10 to $0.70 higher on the day. The Aug 14 contract displayed the most strength and finished at $133.85. Feeders were also in positive territory, up $0.85 to $0.97 Estimated week to date slaughter (w/ Sat estimates) was reported at 548,000 head compared to 570,000 head last week. The CFTC Commitment of Traders report showed managed money accounts increasing their net long position in live cattle by 3,839 contracts bringing their overall net long position to 132,073 contracts. Boxed beef prices were mixed with choice cuts up $0.44 at $236.02 while select cuts were down $0.13 at $232.87. Select was up 5.5% for the week. The Choice/Select spread is at $3.16. Cash cattle trade has run $146-150 in the South, and $237-240 in the North. Friday trades were on the low end of those ranges. The CME Feeder Cattle Index was up 0.22 at $172.48.
Lean Hogs settled $0.60 to $1.15 higher on the day. The Jun 14 contract displayed the most strength and posted a new lifetime contract high close of $120.50. Estimated week to date slaughter (w/ Sat estimates) was reported at 2,072,000 head compared to 2,155,000 head last week. The managed money accounts (per CFTC) increased their net long position by 4,136 contracts bringing their total net long position to 69,642 contracts. The pork carcass cutout is up $1.85 at $111.99. Cash hog prices from the ECB were up $0.35, while values from the WCB were up $1.67. IA/MN marketing areas were up $1.41. The CME Lean Hog Index was up $1.20 at $102.31.
Cotton futures closed 34 points lower to 102 points higher. The May 14 contract traded as high as 93.35 over night but finished in negative territory at 91.27. The weekly Commitment of Traders report showed managed money accounts increasing their net long position by 1,135 contracts bringing their current overall net long position to 54,337 contracts. The Mar 14 contract expired after the close today. China cotton futures on the Zhengzhou exchange for May delivery were 0.47%. ICE Certified stocks were reported 258,139RB, with96 new certs, 18 decerts and 2,215 bales awaiting review. The Cotlook A Index is up 3.00 at 97.55.