CORN
- Sept up 2 @ 5.52 & Dec up 3 @ 5.50
- US corn crop rated at 64% good to excellent vs 65% last week and 72% last year
- Temps expected to be hot over the next 3 days for much of the Corn Belt
- September corn on China’s Dalian exchange is around the equivalent of $10 per bushel
- Scattered showers in Midwest this week
- Flooding in China has hurt corn & soybean crops
SOYBEANS
- Aug up 15 @ 14.28 & Nov up 16 @ 13.73
- US soybean crop rated at 58% good to excellent vs 60% last week and 72% last year
- First notice day for August soybeans is on Friday
- Resurgence of Covid in Malaysia is impacting palm oil production, which could affect the US soybean oil market
- September soybeans on China’s Dalian exchange are around the equivalent of $18.20 per bushel
WHEAT
- Sept wheat up 3 @ 6.80, Sept KC up 7 @ 6.46, Sept MNPLS up 5 @ 8.84
- US spring wheat crop rated at only 9% good to excellent vs 11% last week and 70% last year
- Winter wheat crop is 84% harvested vs 80% last year
- China may have to buy more Russian or European wheat
- Heat & dryness stressing heading wheat in northern Plains
- Ukraine most favorable weather – trouble in western Russia, too hot/dry
CATTLE
- Aug LC up .25 @ 123.70 & Aug FC down .475 @ 161.725
- Drought in the west is forcing liquidation
- Packers only bought 76,804 head of cattle last week
- Futures able to trade higher despite lower cash last week
- Marketings in June totaled 2.022 million head – the largest placements have been in June since 2011
- JBS, the world’s largest meatpacker, imported 30 ship loads of corn into Brazil from Argentina due to the short crop caused by drought and frost
HOGS
- Aug hogs down .025 @ 107.375 & Aug pork cutout up .325 @ 117.750
- Flooding in China killed more than 1 million hogs
- Hog futures started the week stronger due to seasonally tight supplies, improving market technicals, and futures discount to the cash market
- Technical buying supporting hogs at Oct narrows the gap to August
- Retail carcasses have been trading firmer, helping support prices
- There are still ongoing concerns of African Swine Fever in China
Author
Brandon Doherty