CORN
- Sept down 1 @ 5.47 & Dec up 1 @ 5.47
- Ethanol production averaged 1.014 million barrel per day – down 1.36% from last wk
- Rumors of China buying 1-2 million tons of new crop corn
- Funds may need to see yields lower before pushing through resistance levels
- China’s 2021 corn imports poised for record even including cancellations
- Dryness continues in Brazil along with most frost risk
- Preliminary changes in futures open interest as of 7/27 down 2,704 contracts
SOYBEANS
- Aug down 1 @ 14.17 & Nov down 3 @ 13.56
- Exports expected to be weak tomorrow
- If US crop yield drops 1.6 bu or more, would almost eliminate 21-22 carryout
- Scattered showers in the US Midwest is benefiting, not enough in NW
- Palm oil futures pulling back after setting new contract highs yesterday
- In US, all eyes on Iowa whose soil moisture levels are rated 60% poor/very poor
- Preliminary changes in futures open interest as of 7/27 down 6,775 contracts
WHEAT
- Sept wheat up 16 @ 6.91, Sept KC up 14 @ 6.55, Sept MNPLS up 10 @ 8.98
- Exports may be weak tomorrow as US HRW prices are not competitive to global buyers
- First day of spring wheat tour yields at 29.5 – down 32% from the 5-year average
- Russian Ag agency cuts Russian wheat export to 37.1m tons on lower crop & slow sales
- China’s wheat crop threatened by toxin risk after flooding
- What rains are falling in NW Plains providing little/no relief
- Preliminary changes in futures open interest as of 7/27 down 1,049 contracts SRW
CATTLE
- Aug LC up .50 @ 123.42 & Aug FC down .42 @ 160.27
- Futures tried to push resistance levels yesterday, but failed
- Boxed beef pushes higher ahead of Labor Day weekend
- Strength in boxed beef so far is not leading to higher cash
- Cattle slaughter projected at 119K
- Feeder cattle cash index for July 26: up .12 @ 153.97
HOGS
- Aug hogs down .67 @ 106.80 & Aug pork cutout up .72 @ 118.92
- Futures make impressive comeback despite cash & China not buying
- Cutouts gained .45 yesterday, with strong demand
- Packers continue to bid aggressively to keep chain speed balanced
- Hog slaughter projected at 470K
- Cash lean index for July 23: up .01 @ 112.21
Author
Amberlee Bratcher