CORN
- Sep up 3 @ 5.67 & Dec up 6 @ 5.62
- Japan bought 208k tons of the 272k tons of corn sold this wk
- Corn crops in drought area drops to 36% from 38%
- Due to crop failure in Brazil many companies are canceling exports
- Buenos Aires Grain Exchange reports corn harvest @ 62% in Argentina
- Frost expected for Brazil next could further damage crop
- Preliminary changes in futures open interest as of 7/15 down 1,675 contracts
SOYBEANS
- Aug up 22 @ 14.70 & Nov up 26 @ 14.06
- NOPA June crush falls to 152.4 M bu vs projections of 159.5M bu
- Soybeans in drought area drops to 31% from 33%
- China seen speeding up US soybean purchases as margin rebounds
- Despite Covid-19, Indonesia expects palm oil supply to be resilient
- Rains appreciated, however, next week forecast turns dry & warm
- Preliminary changes in futures open interest as of 7/15 up 2,820 contracts
WHEAT
- Sep wheat up 19 @ 6.91, Sep KC up 15 @ 6.55, Sep MNPLS up 23 @ 9.17
- Spring wheat areas that remain in drought are still at 98%
- Saskatchewan wheat stressed by prolonged heat & dryness
- Harvest continues to be slowed due to rains in the central & southern Plains
- What little rain has hit the northern Plains is likely not beneficial at this point
- Preliminary changes in futures open interest as of 7/15 down 3,184 contracts SRW
CATTLE
- Aug LC down 0.07 @ 121.05 & Aug FC down 0.97 @ 156.400
- Cash trade steady with last week’s
- Lighter weights & current marketings will require more cattle to meet demand
- Boxed beef continues to fall – cutouts to lowest levels since April
- Hard for futures to trade higher until boxed beef prices move up
- Cattle slaughter projected at 115K
- Feeder Cattle cash index for July 14: down 0.48 @ 152.35
HOGS
- Aug hogs up 0.77 @ 105.07 & Aug pork cutout up 0.87 @ 112.52
- Futures remain up despite cash falling over $3 yesterday
- Packers quiet as they pre-purchased hogs for the week already
- Demand concerns over China not being on the export sheet yesterday
- ASF confirmed in domestic pigs at German farms
- Hog slaughter projected at 464K
- Cash lean index for July 13: up 0.33 @ 111.00
Author
Amberlee Bratcher