CORN
- July corn down 37 @ 6.19 & Dec corn down 25 @ 5.14
- Crop progress showed corn 90% planted in US
- Rains projected in central US – nice start to the season
- Argentina’s prices reported to be 1.30 discount to US
- US corn basis still very strong 45-60 cents over July
- China’s corn still 10.99 per bu. – more imports likely
- Brazil corn production totals moving more toward 90 mmt
- O/I: Lost 5,458 positions in July futures
SOYBEANS
- July down 19 @ 15.03 & Nov down 22 @ 13.40
- Argentina is setting new COVID cases records daily
- Veg oil markets supported a.m. prices
- US soybean plantings at 75% – 41% emergence
- Brazil soybeans remains 1.00 per bushel cheaper than US
- US processors have relaxed basis on July as needs are met
- O/I: Lost 2,891 positions in July futures
WHEAT
- July wheat down 9 @ 6.52, July KC down 14 @ 6.00, July MNPLS down 4 @ 6.80
- Spring wheat planting 94% complete – 45% good/excellent
- Winter wheat conditions down by 1% to 48%
- Rains expected to fall – northern plains will return to dry/drought conditions
- EU & Black Sea wheat crops still developing well
- Dryness in S. Russia needs to be monitored
- US dollar continues to fall – lowest level since Jan
- O/I: Lost 2,596 positions in July wheat & lost 2,010 positions in KC July wheat
CATTLE
- June LC down .10 @ 11.65 & August FC up 2.05 @ 156.17
- Total beef inventory for April 6% below March – due to demand
- Cattle on Feed being compared to 2019 – supportive
- Packers increasing slaughter rates to meet demand
- Cattle slaughter projected at 120K
- Feeder Cattle cash index for May 21: up .46 @ 135.66
- Open interest lost 2,068 for June futures & gained 180 for Aug FC
HOGS
- June hogs up 1.52 @ 114.87 & June pork cutout up .65 @ 123.97
- Low pork supply reflects continued supply problem and confirms demand still strong
- Market trying to find a level that will slow demand
- Hog slaughter projected at 481K
- Cash lean index for May 20: down .01 @ 111.43
- O/I: Lost 2,682 for June hogs & June pork cutout lost 10 positions
Author
Amberlee Bratcher