TFM Midday Update 7-7-21

CORN

  • Sept down 13 @ 5.38 & Dec down 13 @ 5.25
  • As of yesterday, funds net sellers of 35K contracts
  • Preliminary changed in futures open interest as of 7/6 – up 1,875 contracts
  • USDA crop progress – 64% G/E unchanged from last wk
  • Grain inspections for last week were 1,235K tons
  • Drought continues in Brazil stressing filling corn

SOYBEANS

  • Aug up 15 @ 13.592 & Nov up 13 @ 13.18
  • As of yesterday, funds net sellers of 24K contracts
  • Preliminary changed in futures open interest as of 7/6 – down 430 contracts
  • USDA crop progress – 59% G/E – down 1% from last wk
  • Grain inspections for last week were 206K tons
  • Russian ag agency shrinks crop to 82.3m tons – down 3%
  • Favorable conditions in US delta for developing soybeans

WHEAT

  • Sept wheat down 4 @ 6.21, Sept KC down 1 @ 5.82, Sept MNPLS up 10 @ 8.04
  • As of yesterday, funds net sellers of 14.5K contracts of SRW
  • Preliminary changed in futures open interest as of 7/6 – down 1667 for SRW contracts
  • Egypt bought 240K tonnes of wheat from Russia & Romania
  • Winter wheat harvest 45% versus 33% last week
  • Grain inspections for last week were 258K Tons
  • Rains will be appreciated but drought persists

CATTLE

  • Aug LC down 1.95 @ 120.45  &  Aug FC down .77 @ 159.80
  • Cattle futures have been in sideways pattern – building a solid support level under mkt
  • LC futures inability to move higher while grains fall not supportive to buyers
  • Cash continues to be light this week thus far
  • Cattle slaughter projected at 122K
  • Feeder Cattle cash index for July 1: down .35 @ 146.96

HOGS

  • Aug hogs down 1.90 @ 100.40 & July pork cutout down 1.02 @ 116.00
  • Hog supplies are tightening – packers aggressively looking for hogs
  • Weakening cutouts & tighter supply leaves packers having to buy less – reducing chain speed
  • Current cash buying is slower but may be temporary
  • Hog slaughter projected at 470K
  • Cash lean index for July 1: down .51 @ 111.26

Author

Amberlee Bratcher

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