GRAIN CALLS
Corn: 20 to 22 cents lower.
Soybeans: 28 to 32 cents lower.
Wheat: 9 to 14 cents lower.
GENERAL COMMENTS:
Soybean futures extended this week’s steep losses overnight and sank to seven-week lows on expectations cooler temperatures and rainfall forecast for the U.S. Midwest will boost crop prospects. Corn futures fell to the lowest levels in over two weeks, while wheat also tumbled. The U.S. dollar index surged to its highest level since mid-April after the Federal Reserve accelerated the timing for its first interest rate hike in several years.
The greatest and most beneficial moisture will fall from eastern Iowa and southern Wisconsin into the Ohio River Valley, World Weather Inc. said in a report early today. “Relief will be most short-lived in the northwestern Corn Belt and Northern Plains, but relief is expected to some degree. The cool conditions will be very helpful in conserving soil moisture through reduced evaporation rates,” the forecaster said.
APK-Inform cut its estimate for Ukraine’s 2021 wheat crop to 27.264 MMT, a 358,000 MT reduction from its previous forecast, but the consultant still expects Ukraine to export 19.75 MMT of the grain. APK-Inform also bumped its 2021 corn crop estimate 474,000 MT higher, pushing it to 36.179 MMT
CORN:
December corn overnight fell as low as $5.48 1/4, the contract’s lowest price since May 28 and down from $6.09 3/4 at the end of last week. USDA’s export sales report for the week ended June 10 showed net corn sales of just 18,000 MT for the 2020-21 marketing year, down 91% from the previous week and 95% below the prior four-week average. For 2021-22, net sales totaled 276,100 MT. Traders expected old-crop corn sales between -100,000 MT and 400,000 MT, with new-crop sales between 100,000 MT and 500,000 MT.
SOYBEANS:
November soybeans overnight fell as low as $13.05 1/2, the contract’s lowest price since April 22 and down from $14.38 3/4 at the end of last week. USDA reported net soybean export sales of 65,300 MT for 2020-21. For 2021-22, net sales totaled 6,500 MT. There were net reductions of 43,000 MT of new-crop soybeans to China (new sales of 20,000 MT but cancellations of 63,000 MT). After a limit-lower performance in July soybean oil yesterday, limits expand to $1.50 for soybeans, $45 for soymeal and 550 points for soybean oil for today’s session.
WHEAT:
July HRW wheat overnight fell as low as $5.96 1/4 a bushel, the contract’s lowest price since May 26 and down from $6.38 at the end of last week. USDA reported net U.S. wheat sales of 287,100 MT for the week ended June 10, compared to trade expectations ranging from 200,000 MT to 500,000 MT.
CATTLE: Steady-firmer
HOGS: Steady-mixed
CATTLE:
Traders will be watching to see whether cash cattle prices can sustain recent strength even as boxed beef values soften. Live steers averaged $122.60 per hundredweight in top cattle regions yesterday, up from last week’s average of $120.03, according to USDA. Choice cutout values yesterday averaged $329.17, down $5.26 from Tuesday and the fifth consecutive daily decline, while Select values fell $8.32 to $289.96. In futures, chart levels to watch include the August contract high, reached yesterday, at $125.775.
HOGS:
Hog futures will trade with expanded price limits of $4.50 today after yesterday’s limit-down close. National direct carcasses yesterday averaged $128.45, up $5.73 from Tuesday and up 22% from $105.32 at the end of May. Pork cutout values averaged $120.52, down $1.99 for the day and the sixth consecutive daily decline, USDA reported. Cutout values are down from $132.54 at the end of last week.