After the Bell: Corn Bulls Are Back in Business

Posted on 06/20/2019 3:14 PM

Corn: Corn futures prices closed up 7 3/4 to 9 cents and near their daily highs today. After a normal downside technical correction in an uptrend this week, corn bulls are right back in business. Weather-wise, it’s expected to turn a little drier and warmer in the Midwest next week, but the same late-planting and developmental issues will remain talking points for months. USDA will release its Acreage Report on June 28, along with the Quarterly Grain Stocks Report. The acreage report will be a starting point for determining U.S. planted area but it will probably also include some intentions to plant since the survey was taken in late May and early June.

Soybeans: Soybeans finished high-range with gains of 12 to 13 cents. Meal futures ended around $6 higher, while soyoil was 22 to 23 points higher. Soybean futures struggled to find buyers during the overnight session, but bulls took control during daytime trade. Fundamental support for the move higher came from weather and planting concerns. Heavy rains are expected to continue across areas of the Corn Belt into early next week. Some warmer, drier weather is currently expected next week, though the active atmosphere has some forecasters questioning that outlook. The National Weather Service extended forecast suggests cool, wet conditions are likely to persist through September – not what a crop that’s already well behind in development needs. 

Wheat: Futures ended mixed with winter wheat slightly higher and spring wheat falling near a four-week low. July SRW futures rose 4 ½ cents to $5.27 ¼ and July HRW gained 3 ¼ cents to $4.60 ¾. September spring wheat futures fell 3 ¼ cents to $5.45 ¼. Winter wheat futures largely followed the rally in corn futures today after both markets opened lower overnight and found underlying buying interest. Wheat started lower on sluggish export business. U.S. exporters sold a net 187,600 MT of wheat last week, below market estimates for 200,000 to 500,000 MT, USDA reported this morning. Egypt bought Russian and Romanian wheat yesterday. Prices were in the $210 to $211 range and well below U.S. export values. There were close to 1.5 MMT offered for the tender, which adds to export concerns.

Cotton: Futures were sharply lower, with July down $2.17 at 63.21 cents and December down $1.20 at 65.96 cents. Prices fell after USDA reported old-crop net sales reductions of 119,300 bales as small sales to India, Mexico and Egypt were more than offset by reductions for Turkey of 84,600 bales and 69,900 bales for China. New-crop sales were 221,800 bales, led by sales to Turkey and China. Still, sales for 2019-20 delivery are 23% below the pace of sales of the 2018-19 season a year ago. The market’s focus is shifting to the new crop as the new marketing year is about five weeks away from starting.

Hogs: Futures fell sharply lower, erasing earlier gains and finishing near session lows. August futures were down $2.10 at $80.90, while December dropped $2.175 to $75.30. Prices failed to hold the early gains in response to a slowdown in exports and record slaughter rates that are running 9% ahead of a year ago. USDA said exporters sold 19,700 metric tons of pork last week, down 15% from the prior week and 50% below the four-week average. Shipments were up 2% from the prior four-week average with Mexico and China the top destinations.

Cattle: August live cattle futures closed down 45 cents today and the October contract also was down 45 cents. Both closed nearer their daily lows and at the lowest close so far this week. August feeder cattle futures ended down $1.875. The weaker cash cattle market recently continues to weigh on the futures. Rising corn futures prices again today pressured feeder futures. However, selling interest in live cattle futures was limited today by ideas producer marketings are very current amid below-average steer weights this time of year. Wholesale beef prices did move a bit higher again today on light sales. Choice cutouts rose 27 cents and Select gained 23 cents.

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