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Closing Comments


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Closing Comments


Corn traded both sides of the open throughout today’s session closing +1¼  at $3.59 July. Between high temperatures in Ukraine, drought concerns in northeast China and heat moving back into the US forecast, the market found some light support this morning. A rare late June cold temperature event brought scattered light frost to some parts of the upper Midwest with a few reports of frost damage to crops. Last Friday’s COT report showed managed money and large spec traders rebuilding their large short position and the USDA weekly corn inspections were below expectations for the week ending June 22, as they were announced at 965,608 MT compared to estimates of 1.0 MMT.


Soybeans traded higher today closing +2¼ at $9.06 ¾ July. Widespread rains of .75 to 5.5 inches across the Midwest and including the eastern Dakotas and much of Nebraska failed to pressure the market overnight and throughout today’s session. The USDA released weekly inspection numbers and soybean inspections came in slightly over estimates at 315,099 MT vs. thoughts of 300K MT. The USDA also reported a sale of 110,000 MT of soybeans to Bangladesh.


Wheat had a negative day today closing -8 at $4.65 ½ Chicago September, -11 ¼ KC July and +2 ½ MN July. The downward move is thought to be related to the expectation that Europe will receive good rain coverage this week; however, Ukraine will remain mostly dry and French wheat conditions dropped 6% with continued hot/dry weather. The USDA weekly inspection numbers for the week ending June 22 exceeded expectations coming in at 629,070 MT vs estimates of 500K MT.


Live Cattle closed limit up on a technical bounce of +3.0 at $118.275 August. Friday’s cattle on feed report showed placements for the month of May came in at 112.2% of last year as compared with trade expectations at 110.4% of last year. This is the highest placements for the month of May since 2007 and will be seen as bearish for August and October cattle.

Hogs traded higher throughout the day closing +1.725 at $87.025 July. USDA pork cutout values came in at $100.44 up $1.47 from Thursday and up from $94.90 the previous week. The USDA estimated hog slaughter came in at 419,000 head for Friday and 2,000 head for Saturday. Bringing the total for last week to 2.144 million head. Down from the previous week, but up 2.3% from this same time a year ago.


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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