Home Market Market Watch Midday Update

Midday Update



Midday Update

·         Export sales totals for the week ending June 11 (million bushels); corn 24.7 old- & 7.9 new-crop; grain sorghum 2.4 old-crop; soybeans 4.9 old- and 19.5 new-crop; wheat 11.6. All were relatively weak.

·         Core inflation (excluding food and energy) rose by just 0.1% in May, even though the total consumer price index was up 0.4% on a spike in gasoline prices.

·         The dollar remains down more than 400 points, although off its lows, trading near one-month lows on ideas that the Fed will be slow with interest rate hikes.

·         As a result, there’s been a modest increase in money flow into the broader commodity sector this morning, but it’s had little impact on grain and oilseed prices.

·         Water levels continue to rise on the Mississippi River, threatening to halt barge traffic, which has already occurred on the Illinois River.

·         Soymeal basis is mostly steady this morning, but with weaker undertones.

·         Corn futures are a penny lower after early strength failed at Wednesday’s session highs.

·         Soybean futures are up 6 cents in the nearby and steady for new-crop. Both old- and new-crop contracts are testing major trend line resistance on the charts.

·         Wheat futures are steady in Chicago, down 3 in KC and down 4 in MN, with KC feeling pressure from expectations that harvest will pick up speed over the next 10 days amid weak demand.

·         Live cattle futures are $1 to $1.35 lower after breaking chart support and falling to one-month lows. Product prices are modestly higher, but on low volume.

·         Feeder cattle are down $2.35 on the nearby on concerns about narrowing margins.

·         Lean hogs are mostly 50 to 60 cents weaker. The cash market is steady to 50 cents lower. Product prices are modestly lower on thin volume.


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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Arlan Suderman | Senior Market Analyst
WATER STREET ADVISORY® | www.waterstreet.org
(316) 729-4599 | asuderman@waterstreet.org

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