CORN
- Jul corn down 4 @ 6.71 & Dec corn down 1 @ 5.72
- New estimates of US corn 173.2 bu/acre versus USDA’s 179.5 bu/acre
- Brazil still in drought, Ag Minister labels the worst in the last century
- Most analysts put Brazil production at 90 mmt – versus USDA’s 102 mmt
- In the eastern Corn Belt beneficial rains are landing
- A wave of excessive heat expected for the remaining Corn Belt
- Funds still long 260K contracts
- O/I: Lost 15,225 positions in Jul futures
SOYBEANS
- Jul up 1 @ 15.63 & Nov up 1 @ 14.14
- New estimates of US soybeans 49.5 bu/acre versus USDA’s 50.8 bu/acre
- Weather & higher veg oil prices pushing soybeans higher
- Brazilian soybean production expected to be a record-large crop
- China’s prices rose to 18.53 – imports not likely to slow
- Funds buying beans & oil on hot weather concerns
- O/I: Lost 8,371 positions in Jul futures
WHEAT
- Jul wheat down 5 @ 6.82, Jul KC down 5 @ 6.28, Jul MNPLS up 4 @ 7.87
- Extreme heat and continued dryness continue to push MNPLS wheat
- Wheat in Washington, Idaho, and Oregon continue to suffer
- Paris milling wheat futures jumped higher again
- US wheat not competitive in world markets right now
- Russia should lead in exports as they temporarily dropped export taxes through the 8th
- O/I: Lost 7,309 positions in Jul wheat & lost 1,640 positions in KC Jul wheat
CATTLE
- Jun LC down 0.10 @ 117.02 & Aug FC down 0.20 @ 152.12
- Supplies might be tighter as slaughter levels need time to return to normal
- Jun futures still remains discount to cash
- Light cash trade seen at 120 in the South
- Cattle slaughter projected at 119K
- Feeder Cattle Cash Index for June 1: up 0.04 @ 136.50
- Open interest lost 2,903 for Jun futures & lost 186 for Aug FC
HOGS
- Jun hogs up 0.27 @ 118.72 & Jun pork cutout up 0.80 @ 131.45
- Strong Saturday slaughter indicates determination to make up for lost time
- Obese pigs blamed for China’s pork price plunge
- Hog slaughter projected at 472K
- Cash Lean Index for May 31: up 0.10 @ 113.54
- O/I: Lost 2,604 for Jun hogs & Jun pork cutout lost 32 positions
Author
Amberlee Bratcher