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Closing Comments


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Closing Comments

Early on, Energy prices were supported by the current wildfires that had shut down a third of Canada’s oil production.  The rebound in the US dollar and a building of stockpiles at the Cushing, Oklahoma delivery hub weighed on futures throughout the rest of the day however. 

Corn Export sales this morning were at 30.3 million bushels for the current marketing year, and 2.4 million bushels for the next.  The combination was not enough to get to expectations and seen as disappointing overall.  Corn is the cheapest place of origin compared to Brazil and Argentina for supplies right now, so exports here in the US could pick up again if demand shows up.  China has estimated that the country’s corn planting are could fall by 1.33 million hectares (3.29 million acres) this year, and would be the first drop in 13 years. 

Soybeans had seen their biggest gains of the day when Crude Oil was still strong and exports were released this morning at 7:30 a.m.  Soybeans showed exports of 30.1 million bushels for this current marketing year and 15.8 million bushels for next year.  The combination beat the highest expectation of 36.7 million bushels and put the high in for the day early on.  Market will be keeping a close eye on any cancellations, as a rumor has been identified that China may sell part of its soybean reserves in the coming days and limit any near term export demand.  In Argentina, it is estimated that 785,000 hectares have been wiped out due to the excessive rains from El Nino weather pattern and another 700,000 are still in danger according to the Buenos Aires Grain Exchange. 

Wheat Quality Council crop tour estimated Kansas’ wheat production this year to be at 382.4 million bushels and would be higher than the USDA 2015 estimate of 321.9 mln bushels.  They also estimated the yield to be at 48.6 bushels per acre, well above the 37.0 bushels per acre last year for the state.  Export sales this morning were at 6.6 million bushels for the current marketing year and 5.1 for the next.  The combination put wheat sales toward the bottom of expectations, but within the range.  Wheat complex has fallen down to support areas on the charts and could see a moderate bounce from this level.  Most fundamental information may be priced in for now unless something new arises.

Cattle and feeder cattle closed higher today, helped again by the cheaper grain prices and continued bounce off of recent lows.  Lighter cattle weights and stronger wholesale beef prices helped the rally today as well.  Resistance on the charts are starting to close in and might see a little profit taking into the weekend tomorrow, however there is a little more room to the upside and markets did close the day on the strong side.

Hogs traded a little higher and have kept the momentum on the positive side for right now.  This morning’s weekly government export report showed US pork sales for the week ending April 28th at 30,300 tonnes, with most of it to Mexico.  China said that it expects to strengthen regulations and increase market supply at the same time to try and curb some of the recent rise in prices.

Closing Market Snapshot




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