CORN
- July corn up 3 @ 6.23 & Dec corn up 2 @ 5.18
- China’s news of potentially cancelling corn imports pressured markets early
- US corn planting 90% done & favorable start to growing season
- US Gulf corn remains very competitive and cheaper than Ukraine or Brazil
- Domestic demand expected to remain strong with ethanol margins doing well
- Brazil more rain expected however still believe it’s doing little to improve
- Ethanol production for week ending 5/21 average 1.011 million barrel per day – up 2% from last wk
- O/I: Lost 5,699 positions in July futures
SOYBEANS
- July down 3 @ 15.08 & Nov down 1 @ 13.46
- Yesterday’s selloff was fueled by soybean meal
- US processor bids continue to retreat as needs are being met
- Brazil beans remain more than 1.00 discount to US
- China’s internal bean price still close to $18 per bu.
- O/I: Lost 3,818 positions in July futures
WHEAT
- July wheat down 7 @ 6.49, July KC down 6 @ 5.98, July MNPLS down 2 @ 6.80
- Some flooding expected for parts of Kansas & Southern Plains
- Despite recent rains, forecast for northern plains will return to hot/dry
- With so much rain falling – disease concerns will be important to monitor
- Rain expected for S. Russia – will be much appreciated
- US Dollar recent plunge should help aide wheat futures
- O/I: Lost 3,729 positions in July wheat & lost 2,615 positions in KC July wheat
CATTLE
- June LC flat @ 116.72 & August FC down .17 @ 156.50
- Demand for beef may continue to be very strong after Memorial Day
- Cattle futures are moving in a slow uptrend despite days of weakness
- Packers increasing slaughter rates to meet demand
- Cattle slaughter projected at 121K
- Feeder Cattle cash index for May 24: up .65 @ 136.31
- Open interest lost 2,825 for June futures & lost 306 for Aug FC
HOGS
- June hogs down .50 @ 114.75 & June pork cutout down .12 @ 124.87
- New contract highs through October show traders believer more upside ahead
- Supplies continue to be tight with no end in sight
- Hog slaughter projected at 483K
- Cash lean index for May 21: up .38 @ 111.81
- O/I: Lost 2,834 for June hogs & June pork cutout lost 52 positions
Author
Amberlee Bratcher