US/Chinese tensions mount, with China planning to fight back with tariffs on US goods.
NAFTA negotiations are still in progress with no resolution noted.
CHS Hedging is offering Energy Hedging classes June 21st, Grain Hedging classes July 24th and a free offering of the Compass Contracts class on July 25th. All classes will be held in the Inver Grove Heights office.
Energy markets are mostly higher with crude oil $1-$2 bucks higher.
The US$ and Bitcoin are weaker, while the CD$ and gold are higher.
The Dow, S&P, NASDAQ and Nikkei are all trading higher.
Corn prices fell on decent crop conditions and warm/wet weather conditions, giving the corn crop a grand start to the growing season. Prices saw additional pressure from fund liquidation.
Closes; July at $3.93 ½, down 6 ½ cents, September at $4.02 ½, down 6 ½ cents and December at $4.13 ¼, down 5 ¾ cents.
The December held above its 50-Day MA of $4.12 ¼.
Gulf premiums were 1 cent weaker for June. Processor bids saw no changes, although some in the WCB are snooping around for corn. PNW bids were 4 cents higher for May and 4 cents lower for June.
The soybean market traded lower as the US/Chinese tariff situation intensifies. Losses were limited on SA struggles from last week’s trucker strike and possible delayed soybean planting with this week’s rain events (the last 25% still needs to get planted).
Closes; July at $10.23, down 7 ½ cents, August at $10.27 ¾, down 7 ¼ cents and November at $10.36 ½, down 6 cents.
Products were mixed with oil/meal spread activity noted. Soymeal was down $3-$4 bucks and soyoil was up 27 points.
The last of the soybean planting could get delayed from this week’s rain events.
Gulf premiums were 1 cent stronger in June. Processor bids are mostly unchanged. PNW bids were unchanged at 95N for June and 5 cents higher for October at 105X. Brazil bids were 6-7 higher.
Wheat prices tumbled on technical selling, rapid spring wheat planting and improving weather forecasts for the Northern US Plains and the Canadian Prairies this and next week.
July closes; Mpls at $6.11 ½, down 6 ½ cents and below its 50-Day MA at $6.14, KC at $5.40 ¾, down 15 ¾ cents and Chicago at $5.22, down 14 ½ cents.
Duluth stocks were down 720k bushels to 16.31 mb. Spot floor bids are unchanged for 14’s and 10 cents weaker for 14.5 protein. There were 104 car receipts posted today.
Spreads; Mpls N/U 6-8 carry, U/Z 8 ½-10 ½ carry, Kansas City N/U 17 ¾-18 ½ carry, N/N 63 ¾-67 ¾ carry, Chicago N/U 16 /2-17 ½ carry.
The Feeder cattle market traded higher on strength from Live cattle and weakness in the corn pit. June and August live cattle traded up the daily limit at $106.12 & $104.45 respectively. August feeder cattle traded up 3.57 at $148.55, breaking through resistance at $147.35. The feeder cattle index was down 18 cents at $134.86.
Live cattle futures were higher on short covering, decent demand and the disconnect between cash and futures. June cattle dipped down to $102.85 early in the session and there was light cash trade in NE yesterday at $109.00 and $110-$111 last week.
Boxed beef values were stronger with Choice at $229.30, up 1.74 and Selects at $204.63, up 98 cents. The spread was reported at $24.67 on 62 loads.
The hog market traded higher on stronger cash and product markets. June hogs traded up 1.65 at $77.32.The lean hog index was up 2 cents at $69.46.
Packer margins were stellar for beef at $291.60 and mediocre for pork at $14.10.
Today’s slaughter is estimated at 118k for cattle and 454k for hogs.
Pork products were mixed with carcass, loins, hams weaker and ribs/bellies stronger on 125 loads.
Cash hogs were at $67.19 (+$1.10-$1.14) in IA/MN and Western Midwest, with the Eastern Midwest at $51.49 (+28 cents).