CORN
- Jul up 16 @ 6.78 & Dec corn up 16 @ 5.82
- Export sales 531,100 MT
- Hot weather expected to move from west to the east
- Record or near-record temps expected to hit northern Corn Belt
- Better rain built into 6-10 day forecast
- China’s internal corn price 10.86 per/bu – imports expected to continue
- Ethanol margins remain lofty
- Brazil drought continues to worsen
- Funds believed to 255K contracts long
- O/I: Lost 17,046 positions in Jul futures
SOYBEANS
- Jul up 28 @ 15.77 & Nov up 26 @ 14.29
- Export sales 17,800 MT
- Extreme heat in Dakotas & NW Grain Belt pushing prices higher
- No decision on India’s lower palm oil import tax yet
- Brazil continues to capture almost all soy export demand
- Believed Brazil could be out of soybeans by August – US to take over at that point
- Funds believed to be 95K contracts long
- O/I: Lost 4,818 positions in Jul futures
WHEAT
- Jul wheat up 11 @ 6.87, Jul KC up 11 @ 6.35, Jul MNPLS up 16 @ 7.93
- Net cancellations of export sales 33,300 MT
- Drought in northern Plains continue to support prices
- Rains are hopeful in extended forecast but likely too little to aid drought
- Ukraine production likely to increase by at least 10 mmt to 75 mmt
- European wheat is also on pace for higher production
- Southern Plains are mostly dry & early harvest should start to occur
CATTLE
- Jun LC up 0.10 @ 116.875 & Aug FC down 1.475 @ 151.475
- Cyberattack is resolved but need to catch up on slaughter numbers
- Hope is this week’s boxed beef surge will push cash higher next week
- Light cash trade seen at 120 in the South
- Cattle slaughter projected at 120K
- Feeder Cattle Cash Index for June 2: up 0.15 @ 136.65
- Open interest lost 1,325 for Jun futures & lost 258 for Aug FC
HOGS
- Jun hogs up 0.15 @ 119.525 & Jun Pork Cutout up 0.20 @ 132.800
- Hogs continue to push higher putting in new contract highs by the day
- Packers still aggressively buying hogs keeping supplies tight
- Hog slaughter projected at 477K
- Cash lean index for May 31: up 0.10 @ 133.54
- O/I: Lost 1,692 for June hogs & June pork cutout lost 34 positions
Author
Brandon Doherty