CORN
- Sept down 5 @ 5.37 & Dec down 5 @ 5.25
- 100-day moving average is 5.46 and key resistance is 5.70
- Corn still down today on anticipation of rain expected to fall in Iowa and spread
- Drought continues in Brazil stressing filling corn
- CONAB reports Brazil 2nd corn crop to drop 11% to 83.385M tons
- Preliminary changes in futures open interest as of 7/7 down 7,025 contracts
- Chinese corn prices near cheapest this year on weakening demand
SOYBEANS
- Aug up 3 @ 13.70 & Nov down 2 @ 13.25
- Daily export sale of 122K mt of soybean cake & meal to Mexico
- Some concern there will be areas of flooding and not enough rain in NW Plains
- Favorable conditions in US Delta for developing soybeans
- 100-day moving average resistance is 13.40 – big gap resistance at 13.83
- Preliminary changes in futures open interest as of 7/7 down 7,637 contracts
- Ag group Abiove – puts Brazil 2021 soy exports estimate at record of 86.7M tons
WHEAT
- Sept wheat down 3, Sept KC up 4 @ 5.85, Sept MNPLS up 5 @ 8.13
- 200-day moving average is key at 6.37 and gap at 6.38
- Rains will be appreciated, but drought persists
- Preliminary changes in futures open interest as of 7/7 up 1,371 contracts of SRW
- US dollar down today, low for the morning on Sept futures — 92.24
- Winter wheat likely stalled some this week due to rains
- US wheat export sales are down 11% from last year and not looking promising
CATTLE
- Aug LC down 1.00 @ 119.60 & Aug FC down 1.67 @ 157.32
- Cash prices being steady gives support to futures
- Lower feed prices should improve profitability to some extent
- Cash trade stead at 120-122 in South
- Cattle slaughter projected at 121K
- Feeder cattle cash index for July 6: down .63 @ 145.72
HOGS
- Aug hogs down .12 @ 100.25 & July pork cutout down .40 @ 116.00
- Futures need cash to trend higher
- Processing speeds are slower which could be due to lower hogs available
- Hog slaughter projected at 471K
- Cash lean index for July 5: down .45 @ 110.81
Author
John Heinberg