Provided by Stewart-Peterson Inc.
CORN
- Sep corn up 6 @ 6.21
- Starting Monday, the Midwest will have 2 weeks of warm and dry conditions
- The corn crop is probably far enough along that weather is not as much of a concern for yield as it is for soybeans
- The European Union may end up being a net buyer of corn instead of a net exporter due to struggling with heat and dryness that has affected their corn crop
- Brazil’s corn harvest is on track for record production
- September corn on China’s Dalian exchange is around the equivalent of $10.05 per bushel
SOYBEANS
- Sep soybeans up 45 @ 15.02
- Weather is the main driving factor in the soybean market right now
- Domestic soybean crush margins are very firm which is incentivizing processors
- There was a bill passed in the house that will allow for an increase in biofuel demand which could help soybean oil
- Chinese Dalian soybean oil and palm oil futures are trading higher
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WHEAT
- Sep wheat up 3 @ 8.20, Sep KC up 2 @ 8.92, & Sep MNPLS up 1 @ 9.29
- One vessel may be shipped out of Ukraine today but overall there is concern about risk – some vessel owners may not want to ship even if they can get insurance
- News outlets reported new missile attacks north of Kyiv on Thursday
- The spring wheat tour found one of the highest yields in the US since 2015 at 49.1 bpa
- Ukraine has harvested 29% of their winter wheat
- There is concern about deteriorating quality of grain in some of the vessels that have been sitting in Ukraine since the war began
CATTLE
- Aug LC up 0.075 @ 136.250 & Aug FC unchanged @ 177.425
- High priced feed and drought are both affecting the need to move cattle
- Supply is still expected to eventually tighten
- Recession remains a concern for demand as GDP fell for the 2nd consecutive quarter
- Choice cuts down 0.22 and select down 1.00
- Cattle slaughter projected at 120K
- CME Feeder Cattle Index for 7/28: up 1.91 @ 172.55
HOGS
- Aug hogs up 1.600 @ 120.725 & Aug pork cutout unchanged @ 124.550
- China continues to purchase on a weekly basis
- As inflation and food prices increase, consumers may purchase more pork (vs beef)
- Cutouts were 2.00 higher, but there was a large decline in cash
- National Direct Afternoon report declined 10.86
- Hog slaughter projected at 439K
- CME Lean Hog Index for 7/29: up 0.85 @ 120.58