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Closing Comments


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Closing Comments

Corn settled up a ¼, despite more fund liquidation and weaker bean market.  Brazil’s CONAB estimated the second season 15/16 corn crop at 43.05 mln mt, down from the 50.0 mln mt previous estimate.  Also, the total 15/16 corn crop was at 69.14 mln mt vs. 76.22 mln mt.  That would equate to around 275 million bushels under their previous guess.  That took corn from roughly unchanged to up .10 when it was released, but good weather limited the rally along with weakness in other markets.

More liquidation in Soybeans pushed them down after the latest weather forecast from La Nina would not hit the Midwest until September.  Outside influences by crude oil being down over 2 dollars, and the US dollar rallying contributed the funds concerns around commodities.  The USDA did report a private sale to China and it has been speculated the more sales will be coming.  Brazil’s CONAB estimated 15/16 soybean crop at 95.3 mln mt, down slightly from the 95.6 previous estimate.

Wheat closed a little lower today, but may start tracking with some news that France and Germany, EU’s top two producers, may have to deal with some damage to their harvest.  Weeks of wet, overcast weather have shown disappointment in early yields and quality.  Harvest there will pick up the pace over the next few weeks, when more information becomes available. 

Cattle futures closed lower after funds started rolling from the August contract to the deferred months.  Profitable packer margins and three days of firm wholesale beef values gave some optimism for better prices on cash cattle, but the recent 2-day slide might limit some of the cash advances.

Hogs ended lower on near term cash price uncertainty and fund rolling out of the August long positions.  Midwest cash prices were steady to slightly weaker, according to regional hog dealers. 

Closing Market Snapshot


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