TFM Midday Update 06-25-2021

CORN

Jul down 15 @ 6.38 & Dec down 15 @ 5.21
Yesterday, there were storms in key areas of the eastern and central Corn Belt with a forecast for more heavy rains in these areas over the next 7 days
Longer range forecasts staying dry over the next week in the northwestern Plains, and pacific northwest
Expect high heat in the pacific northwest, which could affect yields
Corn is still highly priced in China with the Dalian exchange September contract around $10.20
Next week’s Stocks and Acres reports will be key to market direction
DTN National Corn Index closed at $6.42

Jul down 31 @ 13.41 & Nov down 24 @ 12.68
Confirmation yesterday that China bought 4.85 MB of new crop US soybeans
Rumors of an additional 5-7 cargoes sold to China
According to the Buenos Aires Exchange, the Argentina soybean harvest is complete (estimate of 43.5 MMT)
Slowdown in domestic soybean demand could indicate adequate supplies have been secured by processors
Northern Plains are expected to remain dry overall with more hot temperatures on the way
DTN National Soybean Index closed at $13.38

Jul wheat down 13 @ 6.38, Jul KC down 4 @ 6.02, Jul MNPLS up 12 @ 8.21
Spring wheat areas in the northwestern and Northern Plains are still lacking rains
Spring wheat rating of 27% good to excellent and 37% poor to very poor have led to recent gains
Some chance of rain in parts of South Dakota and Minnesota short term
Rains in Kansas are delaying harvest of HRW wheat
SRW areas may also be delayed due to flooding in Indiana, Illinois, and Missouri
DTN National HRW Wheat Index closed at $5.93

Aug LC down 0.75 @ 121.875 & Aug FC up .65 @ 157.80
Current demand for beef remains strong and may not follow seasonality (beef demand tends to decrease after July 4th)
Boxed beef ended mixed yesterday with select cuts up 0.73 but choice cuts down 4.63
Cattle on feed report is due out today at 2 PM
Feeder cattle supported by selling pressure in grain markets
Packers may need to bid up to get to their numbers for the week
Slaughter projected at 119K

Jul hogs up .725 @ 100.75 & Jul pork cutout up 2.40 @ 109.40
Court ruling to slow the slaughter pace at some major packing plants is set to begin July 1
The July contract closed limit down yesterday and there was a sharp drop in cash yesterday as well
Thursday did see an increase of $5.17 in cutouts
Hogs and pigs report showed all hogs and pigs at 75.653 million head, which is down 2.2% from last year
Slaughter projected at 456K

Brandon Doherty