Corn
Corn closed the week 20 cents higher.  Private exporters announced sales of 9.8 million bushels of corn to an unknown destination and 126,000 metric tons of grain sorghum to an unknown destination.
U.S. corn exports for the week ended Jan. 13, 2022, were 47.4 million bushels, up from the previous week’s 40.3 million bushels and last year's same-week exports of 36.8 million bushels. The inspections also set a new marketing year high which is typical at this time of the year as the soybean export program winds down and corn gears up. Through the first 20 weeks of 2021-2022, not a single week's exports yet have reached the current average “needed” pace. Cumulative export inspections of 602 million bushels are currently down 13% from last year’s 689 million versus the USDA projecting exports this year to decline 11.9% from last year.
U.S. ethanol production rose to 1,053,000 barrels per day in the week ending Jan. 14, up from 1,006,000 the previous week and up from 945,000 barrels per day in the same week last year. U.S. ethanol stocks rose to an eleven-month high of 23.6 million barrels, up from 22.9 million the previous week, while matching the level seen in the same week last year.
Strategy and outlook: The corn market will need to bid for acres this spring to rebuild the ending stocks at a more comfortable level. Tight basis levels and a market that is close to inverting are bullish fundamentals for the market. 

Soybeans
Soybeans closed the week 45 and a quarter cents higher. Private exporters announced export sales of 4.9 million bushels of soybeans to Mexico; 132,000 metric tons of soybeans to China and 8.8 million bushels of soybeans to Mexico.
U.S. soybean exports saw a rather solid week at 63.2 million bushels, rebounding strongly from the previous week’s 36.2 million bushels, but were still well short of last year’s same-week exports of 85.5 million bushels. Cumulative export inspections of 1.229 billion bushels compare to 1.597 billion last year, leaving weekly exports estimated needing to average roughly 23.9 million bushels per week through the end of August to reach the USDA’s export projection versus last year's 17.6 million per week average from this point forward.
The National Oilseed Processors Association (NOPA) crush report came in at 186.4 million bushels, a new record for December, above estimates of 185 million bushels, last month’s 179.5 million bushels and last year’s 183.2 million bushels. Soybean oil stocks came in at 2.031 billion pounds, a nine-year high versus an estimated 1.892 billion pounds and last month’s 1.832 billion pounds. Well above levels from a year ago of 1.699 billion pounds.
Strategy and outlook: The market has rallied as South American weather has turned drier than desired for Southern Brazil and Argentina, reducing the amount of crop available for export. Additional crop losses will be needed to sustain and extend the current rally.

Wheat
Chicago wheat closed 35 and three quarters cents higher. Kansas City wheat closed 46 and three quarters cents higher and Minneapolis wheat 57 and three quarters cents higher. Exporters did not announce any export sales.
U.S. wheat exports were a seven-week high at 13.6 million bushels, but were still below the roughly 15.1 million bushels per week average estimated that will still be needed through the end of May in order to reach the USDA's just-lowered 825 million bushel export projection.
Even with the further lowering of their estimate, not a single week’s exports over the last 14 weeks reached the new lower “needed” pace. Cumulative export inspections of 470 million bushels are down 18% from last year's 573 million, in line with the USDA now projecting 2021-2022 exports to decline 17% from last year.
Strategy and outlook: Traders are closely monitoring moisture conditions of the winter wheat crop during the winter months. This year’s winter wheat crop has entered dormancy with one of the lowest “good to excellent” ratings in the last 20 years.

Live and feeder cattle
Live cattle closed 40 cents higher while feeder cattle closed $2.85 lower.
The monthly Cattle on Feed report will be viewed as bearish by the industry with the trade badly missing the placement category.
On feed supplies were larger than expected at 100.6%, above estimates of 99.9%. This equates to 12.037 million head and was larger than last month's 99.6% inventory. The trade badly missed the placement category with the USDA at 106.5% and the average guess at 102.6%.
The top end of the guess was 104.7%, so placements were even more negative than the most bearish of expectations. This equates to 1.963 million head and solidly above last month's 103.6%.  Marketings came in at 100.2% vs. estimates of 100.8%.
There was moderate fed cattle cash trade in the north this week at mostly $137 live, and $218 dressed. That is mostly steady to $1 softer than last week. Light to moderate trade also developed in the South at $137 live, which was $1 firmer compared to the prior week.
The Fed Cattle Exchange had 3,398 head offered for sale and 681 head sold at $137.00.
The latest USDA steer carcass weights were even with the previous week at 928 pounds, which is five pounds above a year ago.
Beef export sales for 2022 saw sales of 12,800 metric tons with exports of 14,100 metric tons.
Strategy and outlook: Producers should have window or fence strategies to protect the downside but allow for upside potential as tight supplies in the first quarter of 2022 should be bullish for values but the economy is struggling.

Lean hogs
Lean hogs closed the week $6.45 higher.
Iowa and southern Minnesota weekly hog weights for week ending Jan. 15 saw weights down slightly to 291.4 pounds from 292.2 pounds last week and 291.8 pounds last year.
Net pork sales of 38,700 metric tons reported for 2022 with exports of 31,000 metric tons.
Strategy and outlook: The hog market is rebounding off weekly technical support amid heavy fund short covering.