Midday in the Markets


Highlights

  • The US Dollar is down .612 points at 97.27.
  • The DJIA is up 128 points at 20,792.
  • Nearby June crude oil is up $1.03 at $50.38 per barrel.
  • The 6-10 day forecast shows temperatures remaining cool for the Midwest and Southern Plains.  Drier weather is in the forecast for the Western Corn Belt and PNW.
  • Cold Storage report out on Monday at 2:00 pm CDT.
  • Weekly Crop Progress report out on Monday at 3:00 pm CDT.
  • Last Trade for June NY Crude futures is Monday.
  • Trump is traveling to the Middle East and Europe today to work on his foreign policy agenda.

Grains and Oilseeds

Corn

  • Corn is up 6-7 ¢.
  • Mexico is testing the waters with importing Brazilian corn as NAFTA is at standstill.
  • Ukraine spring grain planting is 94% complete.  Farmers have planted 4.2 out of the 4.5 million hectares of corn that they plan on planting.
  • China continues to auction off corn reserves.
  • Spreads: N/U 7.25 ¢ carry, U/Z 10.25 ¢ carry, N/Z 17.5 ¢ carry.

    Beans

  • Soybeans are up 7-9 ¢.
  • Brazilian soybean exports are on the rise as the Brazilian Real fell 7% yesterday.  A lower Real makes Brazilian commodities more competitive in the marketplace.
  • With rain in the forecast for Argentina, it is expected to delay harvest and possibly reduce some yields.  Approximately 4.6 million hectares remain to be harvested.
  • Spreads: N/1.75 ¢ carry, Q/U 2 ¢ inverse, N/X 1.25 ¢ inverse.

Wheat

  • Wheat futures are firmer this morning. Chicago is up 4-5 ¢, Minneapolis is up 4-5 ¢, and KC is up 8-9 ¢.
  • French soft wheat crop ratings fell by 1% to 76% in G/E condition.
  • Winter wheat crop concerns are rising after the recent wet weather and now colder than normal temperatures may harm the crop.
  • Spreads: N/U Chicago 13.75 ¢ carry, N/U Mpls 7 ¢ carry, N/U KC 17 ¢ carry.

Livestock

Cattle

  • Cattle are firmer this morning.  Live cattle are up $0.30-$0.50 and feeder cattle are up $0.50-$0.75.
  • Packer margins remain strong at $127.95/head in the black.
  • Boxes are mixed this morning.  Choice is down $0.96 at $247.21 and Select is up $0.15 at $221.66.

Hogs

  • Lean hogs are $0.18 lower nearby and up $0.28 for July.
  • Packer margins remain in the black at $27.50/head.
  • Carcass values were down $0.26 yesterday afternoon at $87.00/cwt.