CORN
- Sept down 8 @ 5.42 @ Dec down 8 @ 5.42
- Argentina is the only competition, US positioned well from demand aspect
- US dollar index is at 10 month highs
- Over the next 7-10 days, most of the Midwest and northern Plains should see some rains
- China’s corn price has declined 11 cents overnight to the equivalent of 10.04 per bushel
- Funds remain net long an estimated 180,000 contracts
SOYBEANS
- Sept down 13 @ 13.10 & Nov down 13 @ 13.07
- We have had 11 consecutive days of new sales announcements to China and unknown – despite this the market has lost value
- China imported 7.88mmt of soybean from Brazil in July – down from last year
- Crude oil is at 3 month lows – pressuring the soy complex
- Rains expected in the northern Plains and western Corn Belt should help soybeans there to preserve yields
- Some ports in China have been closed due to the spread of the Delta variant of Covid – impacting shipping and logistics
WHEAT
- Sept wheat down 7 @ 7.21, Sept KC down 6 @ 7.09, Sept MNPLS down 2 @ 9.15
- Wheat is at a 5 year low in global ending stocks
- US wheat is still overpriced compared to other markets
- The US is expected to export 800-900 million bushels of wheat in 21/22
- The French wheat harvest is reported to be 91% complete – reports of poor quality due to heavy rains during harvest
- Some concern over Argentinian wheat due to dryness over the coming weeks
- China still in demand of wheat following floods
CATTLE
- Oct LC up .775 @ 128.925 & Sept FC up .10 @ 158.375
- Cattle on Feed report today is expected to be friendly
- Increase of the spread of the Delta virus variant could impact food demand
- Beef cutouts closed yesterday with prices up 1.55 in choice, and up 6.61 in select
- Cattle slaughter projected at 117K
- Feeder cattle cash index for Aug 19: up .18 @ 155.42
HOGS
- Oct hogs up 1.975 @ 88.90 & Oct pork cutout up 1.65 @ 102.575
- Hog weights continue to remain on the light side
- Lighter weights will require more hogs to fill the needed tonnage
- Pork cutout index up .32 @ 121.03
- Lean hog index for Aug 19 down .99 @ 108.18
- Hog slaughter projected at 471K