Uncertainty regarding the impact of cool, dry weather on delayed crops and month-end long liquidation by funds weighed on corn prices the past week, with a rising dollar adding to existing export concerns. Selling surged after the president tweeted threats of more tariffs on Chinese goods. The story is much the same for soybeans. Acreage and yields are moving targets for both crops, and markets will have to wait until Aug. 12 for USDA to weigh in. Funds likely switched to a net short position in wheat amid renewed tensions with China and abundant global wheat supplies.
Chinese cancellations of U.S. pork and a pullback in cash prices weighed heavily on hog futures. Cattle futures edged a bit lower amid mixed cash action, but strong domestic beef demand and current marketings provide underlying support.
Other highlights of this week’s issue include a ">discussion of the challenges facing the ethanol industry, a look at how MFP 2 county payments were calculated and a special page 4 feature on the results of our acreage survey.
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