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Closing Comments

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Closing Comments

Bull spreads at work had Corn close near session highs, let by the July contract on continued demand, higher ethanol futures, summer weather uncertainty and the expectation of a loss of planted acres to soybeans. Corn export inspections came in above 40 mln bu for the 7th week at 43.722 mln. Corn planting progress came in as the market expected at 75% vs the five year average of 70%. IN, MI, NE, OH and SD are all behind their respective five year averages. Today’s July close was the highest for the contract since April 20th. IF corn price can hold up in the 3.95 area, look for continued support towards 4.15.

July Soybeans retreated for the fourth session on continued profit taking but the market continues to be generally supported which helped November to close higher. Expectations of corn acres switching to soybeans and slowing demand continued to weigh on price. Soybean inspections were just above last week at 7.151 mln bu. Planting progress at 36% matched the trade expectation and is just ahead of the five year average of 32%. NOPA said its members crushed 147.614 mln bushels of soybeans in April, down slightly from the 150.363 a year earlier.

Wheat mixed close but well off early session lows as the consolidation continues in its oversold condition but weighed down by the bearish global fundamentals and impending Northern Hemisphere harvest.  Wheat inspections were off last week’s multi-week high, coming in at 13.517 mln bu. Spring wheat planting progress is 89% planted vs the five year average of 64%. US winter wheat conditions were unchanged from a week ago at 62% vs last year at 45%. Winter wheat is 68% headed vs 56% a year ago.

Cattle and feeders made it to positive territory despite bear-spreading that brought pressure to the front month contracts on positions getting moved from the front to later months. Anticipation of cattle coming to the market in the coming weeks weighed on the June cattle contract. Choice beef this morning saw a $3.43 jump from Friday while Select rose $208.25.

Hogs found support from the live cattle and technical buying. This morning’s wholesale pork price climbed 86 cents from Friday to $83.36 per cwt.

Closing Market Snapshot

 

 

All opinions expressed in this commentary are solely those of Water Street Advisory. This data and these comments are provided for information purposes only and are not intended to be used for specific trading strategies. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. There is significant risk of loss involved in commodity futures and options trading and may not be suitable for all investors.

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