NFA has ordered Plus EV Capital LLC (EV Capital), a former NFA member commodity trading advisor located in Newport Beach, California, never to reapply for membership or act as a principal of an NFA member. NFA also ordered Rohit Chopra, EV Capital’s sole owner, principal and associated person, not to reapply for membership or act as a principal of an NFA member for three years. If Chopra seeks NFA membership following the three-year period, he must pay a $100,000 fine. The decision, issued by an NFA hearing panel, is based on a complaint issued by NFA’s Business Conduct Committee and a settlement offer submitted by EV Capital and Chopra, in which they neither admitted nor denied the allegations. The complaint alleges that EV Capital and Chopra placed unauthorized trades in customers’ accounts, misrepresented to customers about the trades placed in their accounts, made highly risky trades in a customer’s account and manipulated allocation instructions to benefit Chopra to the detriment of customers.

Minneapolis Grain Exchange reported record February 2022 trading volume of 311,768 contracts, a 7.6 percent increase from February 2021 and representing the highest volume total for February in MGEX history. Total year-to-date volume reached a record 588,919 contracts, an increase of 11.4 percent from the same period in 2021. MGEX reported Hard Red Spring Wheat (HRSW) Futures volume of 245,489 contracts, a decline of 14.3 percent from February 2021 and an increase of 32 percent from January 2022. HRSW options volume totaled 8,541 contracts, a 173.1 percent increase from February 2021 and a 0.6 percent increase from January 2022.

CORN

ANALYSIS

Corn closed the week $.96 1/2 higher. Last week, private exporters announced sale of 13.3 mb of corn to an unknown destination.

U.S. corn inspections, for the week ended 2/24/22, were 60.8 million bushels, up from the previous week’s 41.2 million. Corn sales will need to average roughly 48.6 million bushels/week through the end of August to reach the USDA’s export target.

In the weekly EIA report; U.S. ethanol production, for the week ended 2/25/22, declined to 997k barrels/day from 1.024 mbpd the week prior, the lowest in three weeks and second lowest production of the last 21 weeks. US ethanol stocks slipped to 24.9 million barrels in the week ending February 25, down from 25.5 million the previous week, but above the 22.4 million in the same week last year.

STRATEGY & OUTLOOK

The corn market is telling producers to sell the cash now, but merchandizers are rolling bids to cheaper July months and widening basis as they are full of product and unable to move it currently. Option strategies to protect new crop prices will prove valuable this spring.

SOYBEANS

ANALYSIS

Soybeans closed the week $.73 1/2 higher. Last week, private exporters announced export sales of 31.1 mb of soybeans to an unknown destination, 4 mb of soybeans to Mexico and 33.2 mb of soybeans to China.

In the weekly export inspections report; U.S. soybean sales last week of 27.0 mil bu were below last week’s 45.3 mb. Soybean inspections will need to average roughly19.3 mil bu/week through the end of August to reach the USDA projection.

The January soybean crush was 194 mbu in the fats and oils report, slightly above the 193.7 mbu estimate, but still down modestly from December crush of 198.2 million bushels and 1.1 percent below last year’s January crush of 196.5 million bushels.

STRATEGY & OUTLOOK

The market has rallied above key resistance as South American weather has turned drier than desired for southern Brazil and Argentina, reducing the amount of crop available for export. U.S. export business has improve and will tighten US balance sheets, requiring the US to plant more soybean acres this spring.

WHEAT

ANALYSIS

For the week, Chicago wheat closed $3.49 1/4 higher; Kansas City wheat closed $3.08 3/4 higher and Minneapolis wheat $1.86 3/4 higher. Last week, private exporters announced sale of 4.4 mb of HRW to Nigeria.

In the weekly export inspections report; U.S. wheat sales last week of 14.9 mil bu, and were down from last week’s 19.0 mb. Wheat sales will need to average roughly 13.2 mil bu/week through the end of May to reach the USDA’s export.

Kansas wheat was rated 25 percent good/excellent in the weekly crop conditions report, down 1 percent from the previous week. Texas was rated 8 percent G/E, down 2 percent.

STRATEGY & OUTLOOK

Wheat futures have rallied sharply due to hedgers being caught short and unable to exit positions. The rally has uncompetitively priced U.S. wheat on the world export markets.

LIVE & FEEDER CATTLE

ANALYSIS

Last week, live cattle closed $6.22 lower while feeder cattle closed $7.30 lower.

Last week, there was moderate to active fed cattle cash trade in the North at mainly $140 to $143 live, and $222 to $226 dressed. That is mostly steady to $3 softer compared to last week. Light trade developed in the South at $140 live, which was to $2 softer than the previous week.

Last week; the FCE had 1,732 head offered for sale and no cattle sold.

The latest USDA steer carcass weights were up three pounds at 921 pounds, which is 12 pounds above a year ago.

Last week’s beef export sales for 2022 saw sales of 23,800 mts with exports of 17,600 mts.

STRATEGY & OUTLOOK

Producers should have window or fence strategies to protect the downside, but allow for upside potential as tight supplies in the first quarter and second quarter of 2022 should be bullish for values but the economy is struggling.

LEAN HOGS

ANALYSIS

Lean hogs closed the week $3.30 lower.

Iowa/southern Minnesota weekly hog weights for week ending Feb. 26 are 287.8 pounds vs. 287.5 pounds last week and 287.1 pounds a year ago.

This week’s net pork sales of 42,200 mts reported for 2022 with exports of 30,100 mts.

STRATEGY & OUTLOOK

The hog market rallied to but failed at major technical resistance.