CORN
- July Corn down 14 @ 6.85 & Dec corn down 5 @ 6.10
- Yesterdays USDA report tightens US balance sheet further
- Markets down this morning on reports of rains in Dakotas
- Storms also include severe wind damage – may hurt more than the rain helps
- USDA lowered Brazil corn to 98.5 mmt – most analysts have it pegged at 90 mmt
- Brazils CONAB lower the crop to 96.4 mmt
- Monday’s crop rating expected to show conditions worsening
- O/I: Lost 35.832 positions in July futures
SOYBEANS
- July down 31 @ 15.13 & Nov down 18 @ 14.41
- Soybeans pressured by USDA increase to ending stocks
- Veg oil markets are down hard today
- Despite increases from USDA – ending stocks are still extremely tight
- Soy basis is rising in Brazil – indicating supplies may be getting low
- USDA reported a record crop for Brazil at 137 mmt
- Weather remains bullish for soybeans in US
- O/I: Lost 20,056 positions in July futures
WHEAT
- July wheat down 1 @ 6.83, July KC down 1 @ 6.39, July MNPLS down 9 @ 7.65
- MNPLS futures continue to fall due to rains in the Dakotas
- USDA projected much higher than expected production numbers
- World numbers also increased for Russia, Australia, EU, & Ukraine
- Harvest should advance with weather looking clear for next week
- Despite the rains of today, forecast for 6-10 outlook returns to hot/dry for most areas
- O/I: Lost 13,660 positions in July wheat & lost 6,594 positions in KC July wheat
CATTLE
- Aug LC up 1.37 @ 120.45 & August FC up 1.40 @ 149.82
- Export sales may be indicating a slowing of international demand
- Cattle up again for 3rd day in a row – indicating potential support levels found
- Cash has stayed steady this week 119-120
- Cattle slaughter projected at 117K
- Feeder Cattle cash index for June 9: down .13 @ 139.91
- Open interest lost 1,081 for Aug LC & gained 12 for Aug FC
HOGS
- July hogs down 1.10 @ 120.20 & June Pork Cutout down .05 @ 134.75
- Packers remain aggressive to satisfy demand
- Obviously there will be a tipping point in prices – however trend remains up
- Hog slaughter projected at 477K
- Cash lean index for June 8: up .94 @ 118.71
- O/I: Lost 4,867 for July hogs & June pork cutout lost 15 positions
Author
Amberlee Bratcher