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Closing Comments


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Closing Comments

Corn closed higher, but off session highs, on continued concerns for incoming hot weather in the corn belt and supportive demand fundamentals. Export inspections for corn were the best weekly inspections since 2010, coming in at a whopping 66.8 mln bu. Informa today lowered their forecast of corn planted acres for 2016 to 92.566 mln acres, off 800k from their previous estimate. Funds were reportedly buyers of 16,000 corn contracts today. Condition ratings this afternoon showed corn at 75% good/excellent – a match of last week’s rating. Technically today, the Dec ’16 contract match the high from last July’s rally.

Soybeans lower on profit taking after the front month posted near two year highs. Interesting note that Cuba made its first US soy oil purchase in more than five years as a result of the production concerns out of South America. Export inspections were above last week at 5 mln bu. Informa raised their acreage estimate for soybeans in 2016 to 83.761, up 750k from their previous guess. Condition ratings showed good/excellent of 74%, a jump of 2% from last week’s rating.

Wheat couldn’t hold early session strength as harvest pressure and ample world supplies cap rallies. Reports from dealers in the Plains are for good yields and variable protein on early harvest of HRW wheat. Export inspections were comparable to last week at 13.3 mln bu. Spring wheat condition ratings came in unchanged from last week at 79%.

Cattle came out of the gate lower on live cattle losses and technical selling, keeping the pressure on through the session and finally closing the first four months limit lower. Cash cattle in the southern plains Friday brought $128 per cwt, mostly steady with the previous week. Boxed beef values from earlier today showed Choice 36 cents higher and select trading 22 cents lower.

Hogs were mixed with the soon to expire June contract lower but support found in summer month futures. Cash hogs traded steady to 50 cents lower today with pressure coming mostly from reduced packer demand as many packers have bought this week’s needs. Support was provided in the deferred months on continued expectation that hot weather will reduce rate of gain for late summer supplies.

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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