The USDA Outlook Forum has been released.

This morning’s grain trade is universally lower across the board with wheat prices again leading the decline. The USDA Outlook Forum released its results already this morning. They reported for production 91 million corn acres (91.8 expected), 87.5 million soybean acres (86.5 expected), 47 million wheat acres (47.5 expected). Corn yield 181 bpa, soybean yield 52 bpa, wheat yield 49.5 bpa. The data numbers were as widely expected with trend line yield usage.

Another report out today is the NOPA Crush Report at 11 am CT with analysts projecting a January crush of 189.9 mbu compared to 195.33 mbu in December. Soyoil stocks are expected to rise to 1.41 billion lbs from 1.360 billion lbs in the previous month.

The EPA indicated late yesterday that farmers will still be able to use some of their existing supplies of dicamba herbicide despite an AZ court ruling stopping its use. The Head of the American Soybean Assn. said they are thankful the members will be able to use products already ordered and delivered.

The grain trade has pervasive bearishness, which is consistent with February seasonals. Lows are formed during this window and are part of the annual event that stimulates the annual spring rally that gets underway when you turn the calendar over to March. Demand is being stimulated with the offer of the lowest prices in three years.

After recent rains, limited rainfall now is anticipated across Argentina for the next 10 days. Long-range 11-15 day forecast shows rain returning but not as widespread as the event that just ended. Seasonal high temperatures will prevail in the 80s-mid 90s.

Ag Sec Vilsack told a congressional hearing that if Congress does not act on CA’s law tightening animal welfare laws for pork products, expect US meat marketplace chaos. President Biden backed the pork industry’s position. This had hogs opening firm yesterday with a sharp gain pushed through the session as the comments caught the shorts by surprise, and the Algo rhythm traders bought.

Live and feeder cattle tumbled yesterday to sharp losses at one point during the session but closed midpoint of the session. Negotiated fed cattle started on Thursday with lower prices and had sales in the South down $2 at $180. Dressed sales in the north were quoted $3 lower to $1 higher at $285-289. Cattle slaughtered midweek totaled 363,000 head, which is 13,000 less than last week and 9400 head lower than a year ago. Box beef had choice $1.73 higher while select was $1.28 lower. Upward momentum that was in place since January may have been lost, with now a stagnant sideways to lower trade possible into early March.