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Closing Comments

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Closing Comments

Corn found itself higher today with help from a much higher placement number in cattle, reaffirming the stronger feed numbers from the last crop report that saw an increase of 300 million bushels in feed.  Another good export number of 42.3 million bushels of corn also helped, while more planting delays for southern areas of the corn belt helped to support also.  For the week, corn was 11% higher than last week and ahead of the 5 year average of 85%.  Most notably, Indiana is at 62% vs. 5yr average of 77% as the state farthest behind because of all the rain and colder temperatures.  60% percent emerged surprisingly vs. 55% 5yr average and 43% last week.

Another week of poor inspections for Soybeans (2.8 million bushels) along with ideas of pulling more acres from corn pushed them lower today.  Early strength in soymeal was only enough to drag soybeans off of the lows in the morning session, but as meal started to slip so did the beans.  The US dollar has also been firming up, while the Brazilian Real weakness has allowed business to move back to South America.  There also have not been any more updates lately on Brazil or Argentina, as far as crop damage, like it was hitting the news wires a couple of weeks ago.  For the week, soybeans were 56% planted vs 5yr average of 52% and 36% last week. 

Inspections for Wheat were down a little again this week at 11 million bushels.  Really, it will be tough for wheat to rally to much from here as harvest is just around the corner and lofty world supplies will work against it.  Something to watch for would be if all the rain has done anything to affect the quality of the crop again this year, but may not be known for some time. 

Cattle and Feeders traded the report from last Friday which showed a very large inventory for cattle and much higher than expected numbers forcing the cattle to trade limit down.  Expanded limits will take over tomorrow and will see if a bid can be found.  Frozen beef stocks were at 452.35 mln lbs in April vs. 613.803 mln in March.

Hogs were down in anticipation of the cold storage report this afternoon and it did not disappoint.  Pork belly stocks were at 72.592 million lbs in April vs. 65.028 mln in March. Total Pork stocks were at 635.424 mln lbs for April compared to 613.803 mln in March. 

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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