CORN

• Jul corn down 5 @ 7.67
• Corn is lower with the rest of the grain complex this morning after Reuters reported that Brazil and China are close to a deal that would allow Brazil to export corn to China
• September corn on Brazil’s futures exchange was up 2.4% yesterday as July corn in the US fell 13-3/4 cents
• Demand for cash corn in the US remains strong with DTN’s National Corn Index priced just 6 cents below July futures yesterday, the strongest basis in ten years
• So far in 21/22, ethanol production has been running 9% higher than last year, showing the strong demand for ethanol as gas supplies are tight

SOYBEANS

• Jul soybeans down 12 @ 16.81
• Soybeans are following corn lower even though demand remains strong with another old crop sale of 4.76 mb announced yesterday to unknown destinations
• Old crop soybean sales are reported to be the second-highest at this time of year with sales already exceeding USDA’s projection, and with record large new crop sales
• July soybeans are priced 60 cents over the August contract, a sign of strong demand
• Both soybean meal and oil are lower this morning despite good demand and high crush premium

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WHEAT

• Jul wheat down 20 @ 11.35, Jul KC down 22 @ 12.16, & Jul MNPLS down 32 @ 12.45
• India has announced that they have no immediate plan to lift the wheat export ban according to the commerce minister, but they will continue with deals done directly with other governments
• Overnight headlines highlight Interfax reporting that Russia will now allow humanitarian food vessels to be shipped from Ukraine, but many doubt that this will take place
• Wheat may be lower due to traders thinking that recent rains will help winter wheat yields, after producers told the HRW Wheat Tour that any rain at this point would be too late to help

CATTLE

• Jun LC up 0.275 @ 133.025 & May FC up 0.200 @ 154.700
• Live and feeder cattle are up this morning with corn sharply lower
• June cattle hold a significant discount to cash at about 5 dollars
• Initial trade for cattle was a dollar lower than last week
• Choice cuts down 0.63 and select up 1.12
• Cattle slaughter projected at 125K
• CME Feeder Cattle Index for 5/24: up 0.45 @ 153.17

HOGS

• Jul hogs up 1.400 @ 110.450 & Jun pork cutout up 1.100 @ 115.775
• Hogs are higher with an impressive jump in cash yesterday, and a cutout that rose by 1.19
• Hog supplies seem to be more current, which requires packers to be more aggressive in purchasing
• Supplies are expected to tighten as the year progresses
• National Direct Afternoon report has cash up 6.33
• Hog slaughter projected at 475K
• CME Lean Hog Index for 5/25: up 0.91 @ 102.08

Author

Amanda Brill