CORN
- Sept down 9 @ 5.55 & Dec down 9 @ 5.51
- Weather still looking threatening to Western Corn belt
- Minimal rains hitting Northern Plains & upper Midwest this morning
- Flooding in China could bring them back to US for corn
- Current weather model is not boding well for USDA’s record yield projections
- Due to Brazil decimated crop – US & Ukraine will likely have to fill the void
- Preliminary changes in futures open interest as of 7/21 up 430 contracts
SOYBEANS
- Aug down 10 @ 14.06 & Nov 7 @ 13.54
- Futures pressured by lower meal prices
China’s negative hog margins are thought to be lowering meal demand - Palm oil still incredibly strong – putting in contract highs in Oct
- Rise COVID cases in Asia bearish for demand
- Brazil’s soy basis has been moving higher making US beans more attractive
- Argentina’s battle with lowered water levels makes exports difficult/impossible
- Preliminary changes in futures open interest as of 7/21 down 1,7443 contracts
WHEAT
- Sept wheat down 1 @ 6.90, Sept KC up 1 @ 6.54, Sept MNPLS down 10 @ 8.93
- Wheat rallied early but falling now with corn & soybeans
- Paris milling futures were higher today
- Ukraine wheat looks good but weather ahead is too hot/dry
- French wheat harvest under way – due to flooding quality will drop
- US weather still bullish for spring wheat futures
- Monday could show an even lower crop rating for spring wheat than 11%
- Preliminary changes in futures open interest as of 7/21 up 1,573 contracts SRW
CATTLE
- Aug LC up .55 @ 121.35 & Aug FC up 1.75 @ 159.95
- Cattle futures boosted by fall in grains
- Higher boxed beef prices are also supportive
- Cash activity not good, 1.00-3.00 less than last week
- Beef in cold storage said June was the lowest level in 7 years
- Cattle slaughter projected at 113K
- Feeder Cattle cash index for July 21: up .68 @ 151.39
HOGS
- Aug hogs up .45 @ 107.10 & Aug pork cutout up .62 @ 116.62
- Cash hog price down yesterday 1.47
- June cold storage said prok supply was down 4% from May
- Pork bellies reported to be 32% below a year ago
- Hog slaughter projected at 438K
- Cash lean index for July 20: up .01 @ 112.34