Morning Commentary

Sept corn up 4 ¼ at $4.5175

Aug beans up 5 ¾ at $9.1425

The DOW is up

USD is weaker

Crude oil up $.53 at $57.96

Good morning,

Corn  traders are wondering if the highs are now in place or will the bulls make another run? The market lost about -15 cents last week and bears argue prices could continue to depreciate as demand waivers and weather starts to improve to some degree. However, the market feels like it still wants to trade nearby weather and its association with planting.

Soybean  traders have a lot to consider this week as U.S. weather complications collide with the end of week USDA June Acreage report and the headlines surrounding the upcoming President Trump and Xi meeting. We’ve added over +$1.00 in risk-premium and it feels like we are now in a battleground area where the trade needs to see a few more answers before making a definitive move in either direction.

June Cattle on Feed Report Shows Inventory Up From a Year Ago:  The report showed a total inventory of 11.7 million head for the United States on June 1. This increase of 1.6%. As usual, Texas, Nebraska and Kansas lead the way in total fed cattle numbers, accounting for just under 7.7 million head, or approximately 65% of the total on-feed inventory in the country. Typically, May tends to be a larger month for placements, in part due to animals moving off wheat pasture in the southern Plains, and other backgrounding operations elsewhere into feedyards. Placements in May totaled 2.06 million head, which is 3% below 2018 levels. Marketings in May were 2.07 million head, up 1% from a year ago and in line with the average analyst expectation. We are going to need to move through a lot of supply in the coming weeks. (Source: Farm Bureau)

U.S. Hog Inventories Flooding Domestic Market: Lean hog prices tumbled Friday as the U.S. Department of Agriculture reported that meat companies like Tyson Foods and JBS USA slaughtered 462,000 hogs, up +9% from a year earlier. For the week, packers slaughtered about 2.4 million hogs, also up +9%. Many U.S. producers have finally given up on China massively ramping up imports of our pork and are now delivering hogs that were kept a bit longer than they should have.


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