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Closing Comments

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Closing Comments

Corn continued its steady approach of climbing a little more each day.  There was some selling exhaustion after the initial morning excitement and could be a sign of topping out for now or needing something new to present itself to keep it going.  Maybe it is an extended hot/dry forecast past the next 10 days or a stronger then expected bullish surprise in the monthly crop report. 

Soybeans saw another sale to China this morning of old crop and helped sparked things right at the morning session open.  Year over year, soybean imports to China stand at an increase of +14.5% and currently at 31 mmt.  Certainly more fears of hot dry weather have continued to support all the grain markets along with problems in South America.  A little protection ahead of the USDA monthly crop report maybe seen here as well, and the market is trying to price in some slightly bullish numbers ahead of time. 

Wheat traded higher and followed the corn and soybean markets as traders were covering short positions.  The bearish bets were in place because of the expected harvest bringing larger than normal supplies and it being just around the corner.  Tough to stay short wheat and continue to watch corn and soybeans accelerate to new highs, also given the massive short position held by fund managers.

Cattle put in a nice rebound today, closing almost limit up in the August contract and despite the stronger grain prices.  Concerns and ideas emerging that the hot weather will slow down animal weight gains had investors nervous.

Hogs extended higher today getting help from wholesale pork prices and the steep turnaround in cattle futures.  Today’s wholesale price jumped to 92 cents per cwt from Tuesday $87.26 per cwt.

Closing Market Snapshot

 

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