CORN
- July corn down 3 @ 6.55 & Dec corn down 9 @ 5.37
- Weekly grain inspections for export 1.727M mt versus 1.892M mt last week
- Rains brought relief to Brazilian corn over weekend, but much of it is too little, too late
- Trade looking at higher acreage number than USDA’s 91 million acres
- Corn high exports, ethanol demand, and feed uses tightening old crop supply
- Corn basis remains strong domestically
- Managed money net positions: 291K long
SOYBEANS
- July down 9 @ 15.17 & Nov down 3 @ 13.56
- Weekly grain inspections for export 193K mt versus 308K mt last week
- US soybean basis continues to decline
- Argentina crushed 405K tons of soy at plants in April
- Brazilian processors reduce purchases & prices drop in Brazil
- Brazil soybean crop estimate raised to 137.2M by South American Ag firm
- Managed money positions: 152K long
WHEAT
- July wheat down 13 @ 6.61, July KC down 9 @ 6.14, July MNPLS down 19 @ 6.80
- Weekly grain inspections for export 573K mt versus 658K mt last week
- US wheat prices not competitive with EU/Black Sea Region
- Russia will implement higher export taxes June 2 to help mitigate inflation food costs
- Last week, Kansas wheat tour projected record yield of 58 bpa
CATTLE
- June LC down 1.05 @ 116.62 & August FC up .10 @ 153.80
- Cattle on Feed rose to 11.73M head on May 1
- Placements onto feedlots up 27.2% to 1.821m head
- Feeder cattle cash index for May 20; up 1.34 @ 135.2
- Cattle slaughter projected at 119K
- Open interest lost 2,985 for June futures & lost 248 for Aug FC
HOGS
- June hogs down .97 @ 113.25 & June pork cutout down 1.00 @ 123.50
- All contracts put in new highs last week, more upside expected
- Strong cutouts should continue to provide support
- Hog slaughter projected at 479K
- Cash lean index for May 19; down .18 @ 111.44
- O/I: Lost 2,776 for June hogs & June pork cutout lost 41 positions
Author
Amberlee Bratcher