TFM Midday Update 6-18-21

CORN

July up 12 1/4 @ 6.46 & Dec up 24 3/4 @ 557 1/2
Price recovering off the Thursday’s strong sell-off
Close eye being kept on weather forecasts and rain in western corn
White House is considering lower blending targets
Beneficial rains on the horizon for eastern Corn Belt
Sharp sell-off should slow corn movement, which should support the cash market and basis levels

July up 50 @ 13.81 & Nov up 56 @ 13.09
Soybean trying to recover after an 8% drop on Thursday
Futures were pressured by soybean oil and concerns on Biofuel blending requirements
Soy product market providing buying support this morning.
Overnight rains disappointing in IA and MN
Weekend weather forecast will be closely watch going into crop ratings next week

July wheat up 17 1/4 @ 656 1/4, July KC up 16 1/2 @ 6.02 1/2, July MNPLS up 16 @ 7.68
Wheat market a follower of other grains, recovering the majority of losses from Thursday.
Pressured by mostly favorable winter wheat conditions outside US
Weather remains positive for harvest this week
Temps are extremely hot – MPLS wheat up today due to threat to crop
If rains do not land as expected – recent fall in price could reverse next week
Stronger U.S. dollar a concern for U.S. wheat staying competitive versus global demand

Aug LC up .925 @ 122.05 & August FC down .175 @ 157.225
Higher cash this week has supported futures with cash trading $2-4 higher than last week.
Weekly export sales of 12,800 mt – down 20% from last week
August Live cattle tested and held support levels in early trade.
Cattle slaughter projected at 121K
Feeder cattle cash index for June 15: up .93 @ 141.28
Strong grain market pressuring feeder cattle and limiting gains

July hogs down .725 @ 110.250 & July pork cutout up .425 @ 119.600
Hog futures may be overdone to the downside considering strong cash
Weekly export sales of 29,300 – up 49% from last week
Hog slaughter projected at 484K
Cash lean index for June 18 down .92 to 121.68
Front of Hog market concerned about possible slow down of slaughter line on July 1^st due to court ruling

John Heinberg