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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	-0.0200	3.7825	3.6175
Soybeans	-0.0750	9.1775	9.8500
Wheat	+0.0425	5.2425	4.5100
Cattle	-0.57	126.28	125.925
Hogs	-2.00	60.13	72.83
Cotton	-0.49	73.64	78.35
Milk	+0.10	14.36	13.72
Crude Oil	+1.62	55.31	65.80

Corn and soybean futures were down slightly on the week as traders awaited news from U.S.-China trade talks. In corn, the market maintains a remarkably flat trajectory. Soybeans showed some strength before retreating, with earlier gains driven by reports that China was making a large purchase of U.S. soybeans. Those purchases have been partially confirmed, but traders recognize that even if China buys 5 million metric tons as has been speculated, global soybean supplies remain comfortable. The other supportive factor for soybeans is dryness in Brazil. Crop estimates for Brazil continue to drop, although this is partially offset by good conditions in Argentina. Wheat futures were up slightly on the week and also lack a strong direction. Brutally cold temperatures may have caused some winterkill in the lower Midwest and central Plains, but it will be spring before details on that emerge. Cotton futures were lower, despite a strong weekly export sales report. The problem is that export sales report is six weeks old, as USDA is busy trying to catch up after being shut down for several weeks. USDA will release a Supply and Demand update, along with Dec. 1 Grain Stocks and Winter Wheat Seedings, on Feb. 8.

In the livestock complex, what started as a slow week for live cattle became very interesting late, as futures rocketed higher on Thursday morning before failing spectacularly and posting massive bearish reversals on the daily chart. Slow-developing Plains cash cattle trade and disappointing prices weighed on futures, as did beef demand concerns driven in part by the winter weather. Lean hog futures slid lower for most of the week, pressured by ample supplies, slaughter disruptions caused by the weather and concerns about Chinese pork demand. Most lean hog contracts fell to their lowest levels in more than five months.

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