CORN
- September down 0.0075 @ 3.40, December down 0.005 @ 3.54, March down 0.005 @ 3.6575
- Crop conditions deteriorated the most in 8 years on Monday’s update and this is likely to continue with heat and dryness in many areas so far this week
- The market is not sure if rains seen to the end of the week will provide much crop relief
- ProFarmer Crop Tour estimates leave ending stocks at similar levels to the last four years
- Sharp drop in open interest lately is indicative of a short-covering rally
- December futures are trading in an inside session after yesterday’s gap higher
- Prices have fallen back within the Bollinger Band range but are still overbought
- Funds bought 30,000 contracts yesterday
SOYBEANS
- September up 0.0475 @ 9.185, November up 0.0325 @ 9.235, January up 0.0275 @ 9.30
- Most are expecting a record crop from Brazil this year
- Heat and dryness has likely impacted the soybean crop more than the corn crop
- Questions whether rains later this week will provide ample relief
- Positive trade tone between US and China
- November beans made their highest close yesterday since mid-February
- Stochastics are overbought
- Funds bought 15,000 contracts yesterday
WHEAT
- December CHI up 0.01 @ 5.365, December KC up 0.0025 @ 4.5575, December MPLS down 0.03 @ 5.2725
- Egypt bought 530,000 tonnes of wheat from Russia yesterday
- Taiwan is now tendering for US milling wheat
- Positive US-China trade relations
- Dropping open interest suggests fund short-covering
- CHI futures are trading in an inside session below their 200-day moving average resistance level
- KC and MPLS futures are also trading inside of yesterday’s ranges, though are testing and holding their 50-day moving average resistance
- Funds bought 6,000 contracts of CHI wheat yesterday
CATTLE
- August lives down 0.42 @ 105.07, October lives down 0.40 @ 108.37, December lives up 0.02 @ 111.72
- August feeders up 0.42 @ 142.67, September feeders up 0.37 @ 143.45
- Cash trade so far this week has been steady to slightly lower than last week
- Beef values have made higher closes 14 sessions in a row
- Pasture conditions are deteriorating quickly
- October live cattle have fallen back below the 20-day moving average support
- September feeders are holding to lower Bollinger Band support level
HOGS
- October down 0.60 @ 55.35, December down 0.52 @ 56.15, February down 0.20 @ 62.57
- Carcass cutout values closed above year-ago levels yesterday for the first time since May 30
- Aggressive buying from China
- Supportive Cold Storage report this week
- October hogs are making bearish key reversal action so far today
- Stochastics are overbought
- 10-day moving average near 53.80 is nearby support