CORN
- July corn up 5 @ 6.84 & Dec corn up 6 @ 6.08
- We remain in a weather market – volatility elevated
- Moderate drought conditions are affecting IA, SD, & MI
- Brazil is still dry
- Corn rated 72% good to excellent overall
- Dakotas ranged from 42%-46% good to excellent
- Private analysts expect Brazil corn crop around 90mmt vs the USDA’s 102mmt
- National corn index closed at $6.90
SOYBEANS
- July up 25 @ 15.86 & Nov up 15 @ 14.55
- Soybeans rated at 67% good to excellent overall
- Yield loss is a major concern with balance sheets being so tight
- Drought expanding and worsening in northern plains
- Crop is 90% planted and 76% emerged (both well above average)
- Index funds continue to roll long positions to deferred months
- National soybean index closed at $15.34
WHEAT
- July wheat up 5 @ 6.85, July KC up 5 @ 6.35, July MNPLS down 12 @ 7.73
- Ag consult group pegs Russian wheat crop at 80 mmt
- Winter wheat harvest should advance rapidly with no rain to slow it down
- Spring wheat rated at 38% good to excellent (lowest since 1988)
- Heat and dryness continue to devastate the spring wheat crop
- Some storms in the Dakotas brought hail and high winds, though the forecast remains hot and dry
- National wheat index closed at $6.15
CATTLE
- June LC up 0.275 @ 116.50 & August FC down 0.525 @ 149..675
- Last week’s JBS hack may result in aggressive buying this week
- Higher grain may increase the desire of feedlots to move cattle early
- Boxed beef closed lower for the 2nd consecutive day
- Weakness of boxed beef may result in lower packer bids
- Cattle slaughter projected at 120K
HOGS
- June hogs up 0.05 @ 119.95 & June pork cutout up 0.875 @ 134.20
- Strong slaughter numbers with packers making up for disruption of last week
- Domestic demand also strong – export demand is strong
- National Direct price up $1.10 on Monday
- New contract highs across the complex (with the exception of June)
- Hog slaughter projected at 484K
Author
Brandon Doherty