TFM Midday Update 06-23-2021

CORN

Jul up 3 @ 6.63 & Dec down 8 @ 5.31
Heavy rains forecasted in the central and eastern Midwest starting Thursday
It looks like it will remain warm and dry over the next week in the northwestern Plains, and Pacific Northwest
Private analysts still looking for a lower Brazil crop below 90 MMT vs the USDA June forecast of 98.5 MMT
Funds are estimated to be net long 190,000 contracts of corn as of this morning
DTN National Corn Index closed at $6.54

Jul down 10 @ 13.84 & Nov down 8 @ 12.94
Subsoil moisture remains low throughout the western Midwest and most of the Plains
Today USDA reported private export sales of 330,000 MT of soybeans to China during the 21/22 marketing year
Rumors of additional China purchases of new crop US soybeans
ANEC reported June soybean exports of 11 MMT from Brazil
Funds are estimated to be long less than 50,000 contracts of soybeans
DTN National Soybean Index closed at $13.59

Jul wheat up 4 @ 6.55, Jul KC up 8 @ 6.04, Jul MNPLS up 20 @ 8.03
Minneapolis wheat futures remain strong
Spring wheat rating of 27% good to excellent and 37% poor to very poor have led to recent gains
Some soft red wheat areas will get heavy rains which will delay harvest
Yield potential lower due to a dry outlook in the Dakotas, Minnesota, and the Northwest
Parts of Russian and Eastern Europe still experiencing high heat, putting stress on their wheat crop
DTN National HRW Wheat Index closed at $5.82

Aug LC down 0.025 @ 123.15 & Aug FC down 0.925 @ 157.425
Current demand for beef remains strong and may not follow seasonality (beef demand tends to decrease after July 4th)
Boxed beef continues to decline and may eventually affect the willingness of packers to pay higher
Select cuts down 1.71 and choice cuts down 5.45
Cash cattle traded higher yesterday – some reports as much as $4 higher
May Cold Storage report showed a decrease of 8% of beef inventory from April
Cattle slaughter projected at 121K

Jul hogs down 3.00 @ 104.525 & Jul pork cutout down 3.975 @ 111.825
Traders are cautious about the strength in cash
Record decline of $12.93 in pork cutout price yesterday
Court ruling to slow the slaughter pace at some major packing plants is set to begin July 1
May Cold Storage report showed pork supplies 1% higher than April
Hog slaughter projected at 473K

Brandon Doherty