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Closing Comments

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Closing Comments

Corn maintained a higher price all day and into the close with the help of soybeans and a rather large daily export sale announcement.  The sale included  2.9 million bushels of old crop corn and 6.8 million bushels for the next marketing year.  The announcements have helped confirm sales picking up throughout all of July and supports the firming basis levels east of the Mississippi as well.  Declining corn crop conditions across Ukraine and Southern Russia were also highlighted today and would help keep exports at a strong pace if it continues.

Soybeans lead the day and managed to close in double digits higher.  The daily announcement  for sales to China helped this morning and showed a sale of 4.8 million bushels with about half coming from old crop supplies and the other half for new crop.   Uncertainty amongst weather forecasts for August also keeping some weather premium into the market for right now as well.  Heat is currently expected to return, the question remains around the amount of rainfall will hit the key growing areas in the next 30-45 days.

Wheat closed in mixed fashion across the complexes, lacking anything new to report.  Expectations for export sales tomorrow are between 400-550k MT.  Also, the Black Sea weather pattern is still showing hot and dry conditions that will help accelerate winter wheat harvest, but troubling to the corn pollination that is occurring.

Cattle showed that they were done yet with the recent rally in the live markets and maintained yesterdays’ closing prices.   Feeders were a little softer in some of the deferred contracts, but overall they kept the recent rally intact as well. 

 

Hogs made a new low in the front months and challenging lows in other contracts.  After last week’s low was taken out, losses accelerated and August and October closed nearly limit down.  2 recent USDA reports showed record high hog numbers and more than enough pork bellies in cold storage warehouses that are pressing the futures at the moment.

 

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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