Corn
Corn futures have found renewed strength in recent days, supported by strength in soybeans and crude oil futures. Weather concerns in South America have also been supportive. Robust export sales continue, with weekly net sales for last week coming in at 48.7 million bushels. Ethanol prices have dropped, however, as have plant profits. The project stocks to use ratio of 10.4% does suggest there isn’t much upside left at current price levels. March set a new high of $6.31 on Tuesday, and that high now becomes resistance. There isn’t much support above $5.84 ¾. New crop December, however, continues to trend higher and set a new high on a daily basis.

Soybeans
Soybeans continue to trend higher, charting big gains and setting new contract highs this week. The big news is dry weather in South America. Demand for biodiesel has been strong as well, improving demand for soybeans. Record-high palm oil prices have also been supportive for soy oil. The meal chart, however, looks like a significant top has been put in. The market will be closely watching farmer planting intentions. Private estimates are suggesting a big increase in soybean acres, and if that is indeed the case, the market is overpriced.  

Cotton
Cotton continues to set new 10-year highs. March now has resistance at 125.00 cents, and new crop December is struggling to break above the $1 mark. The market is being supported by crude oil futures, which are currently trading at 7+ year highs, making competing fibers all the more expensive. Weekly export sales of 391,300 bales of old crop cotton and 106,800 bales of new crop cotton and shipments of 197,900 bales were all bullish and gave the market a boost on Thursday. Vietnam and India were the top buyers.      

Rice
Nearby March rice futures have moved above previous resistance at $15, setting a new contract high and a new 18-month high on a front month basis. Export demand, which has been somewhat lackluster, picked up this week with sales of 75,500 metric tons and shipments of 62,500 metric tons. Overall, global demand is solid for rice, which is a key food staple around the world.

Cattle
March live cattle futures have charted losses in recent days. Nearby chart support begins at $134.50, but the market could move toward filling the gap between $133.70 and $133.87. Light trade has been reported this week. Uncertainty surrounding the Omicron variant of Covid and its impact on demand continues to pressure the market. February has support at $136 and resistance near $138 and then the chart gap left between $138.72 and $138.87.

Poultry
In the monthly supply/demand report, USDA raised their broiler production estimate for 2021 on recent slaughter data while turkey production was unchanged from the previous month. Egg production was reduced on slightly lower table egg production. For 2022, the first quarter poultry forecast was raised on higher expected broiler production and hatchery data. Broiler export forecasts were reduced on slower expected global demand. For 2022, broiler, turkey and egg price forecasts were raised based upon current prices and expectations for continued firm demand.

Dairy
In the January supply/demand report, the 2021 milk production estimate and the 2022 were unchanged from the previous month. On a fat basis, the 2021 import estimate and the 2022 forecast were raised from last month on recent trade data and higher imports of cheese and butter fat products while exports for 2021 and 2022 were reduced. On a skim-solids basis, the 2021 import estimate was raised on recent trade data and higher imports of cheese and milk proteins. The 2022 skim-solids basis import forecast was also raised. The 2021 skim-solids basis export estimate was raised on recent trade data while the 2022 forecast was lowered on slower expected global demand for skim milk powder. For 2022, cheese, butter, nonfat dry milk, and whey price forecasts are raised from last month on firm domestic demand and tight supplies. Class III and Class IV prices for 2022 are raised from the previous month on higher dairy product prices. The 2022 all milk price forecast is raised to $22.60 per cwt.