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Closing Comments

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Closing Comments

Corn managed to close higher today despite breakout for higher in the US dollar and negative soybean market.   The EPA proposed a modest increase in biofuel targets for next year.  The agency called for a 4 percent increase from this year, and included 14.8 billion gallons for ethanol, up from 14.5 last year.  More cuts for Brazilian corn production may be in the mix as extreme heat continues to persist, and at a time when the country’s stocks are so low.  Planting windows will look to open up for most of corn belt to get the last roughly 25% of the crop in.

Despite another strong day in soymeal, Soybeans closed lower on unwinding of corn/soybean spreads.  Soybeans are at a resistance area on many of the charts and also gave some reason for profit taking.  Soymeal still does not appear to be done going higher after today, and soybeans will follow until that trend changes.   Crush margins rose another .09 higher to $101.5/bushels, highest it has been since November.

Wheat futures closed mixed on the day as US and world supplies will continue to weigh on rallies until a new headline appears that can change that outlook.  There will be a few concerns about quality following all the rain in the eastern US Midwest soft red winter wheat belt and southern Plains for hard red winter wheat belt.

Cattle and feeders keep short term upward momentum in place for now as they were a little higher in today’s session. Earlier this morning opening bids in Texas and Kansas were opening at $128 compared to $136 traded last week.  Later in the day, $132 was reportedly traded in Kansas.

Hogs closed the day down 1.50 in the front months, and a little lower in the back.  Even with the break today, support areas have been held and making tomorrow’s session import for short term direction.

Closing Market Snapshot

 

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