Mexico will take GMO corn for feed and industrial use.
Grain futures are mixed this morning, with corn finding support on yesterday afternoon’s announcement from Mexico that they will take US GMO corn in January 2024 for livestock feed and industrial use (this was a highly anticipated outcome). However, they still will hold fast to non-GMO corn for domestic human consumption. Soybeans are trading soft as rains occur in Argentina, forecasted ahead of the dry period that starts again on Thursday.
The US Labor Department released its January inflation data called the CPI this morning, and most of the elements of the report came in near estimates. This has allowed the US dollar to soften today while interest rate estimates are seeing values rise as rates decline. The CPI without food and energy, called core inflation, was up 5.6% versus an estimate of 5.5% while why. Consumer prices were up 6.4% versus 6.2% year-over-year guesses for January.
The NOPA will release the January soy crush data on Wednesday with estimates that the crush rate was 181.5 Mil Bu, up 2% from the December crush. Soy oil stocks are anticipated at 1,910 Mil pounds, up 6% from December but off slightly from last year.
Overnight showers and thunderstorms occurred across Argentina with rainfall totals of .1-1.25” on coverage of 20%. Showers continue this morning and Santa Fe and Corrientes. After Wednesday, a lengthy period of dryness occurs for 10 days, with temperatures ranging in the 70s and 80s. Heat starts return by February 23 with readings back into the 90s. Forecast models are mixed for the 11-15 day, as the Canadian model offers a chance of rain while the EU/GFS models are drier and warm.
Live and feeder cattle futures had strong gains to start the week, with February and April each settling at new contract highs while the rest of the market followed. Negotiated fed cattle trade had limited demand, but supplies are tight, and again this week’s negotiations will likely wait until Thursday-Friday. Box beef values had choice gaining $0.29 while select jumped $1.92. The choice/select spread narrowed to a $13.74 choice premium which is historically high for mid-February. The live cattle lift early in the week likely implies Packers will be paying up.