Headlines Control Money Flow
Jun 06, 2018
Grain markets are waiting for further news out of Washington on the trade tariff retaliations. Next week traders will have the USDA June Supply and Demand and the meeting between US and North Korea. Weather currently is keep the Midwest crops in terrific condition as heat and moisture is just what they need. However, trade conscious and concerned about the Midwest temps during pollination. Yield is extremely important this year with only 88 million acres.
Rich Nelson, Allendale Chief Strategist, discusses the soybean crop ratings. View the FREE webinar here.
Wheat futures are getting support from the concern about the shrinking of the Russian crop. World Weather Inc. suggests, “Western Russia will see periods of light rain and cool temperatures during the coming week that will limit drying and may increase topsoil moisture in a few areas. However, much of Ukraine, Belarus, and southwestern Russia will not receive as much moisture and will not likely see a change in soil moisture overall. Just enough rain will fall in the driest areas to be evaporated resulting in little change in the status of dryness through this coming week.”
Funds were estimated to have been net buyers of 11,500 corn and 4,000 wheat contracts. They were net sellers of 2,000 soybean and 3,000 soymeal contracts.
Trump administration has indefinitely delayed a proposed overhaul of U.S. biofuels policy aimed at reducing costs for the oil industry, under pressure from corn state lawmakers who worry the move would undermine demand for ethanol. (Reuters)
Safras sees Brazil's soybean exports at 70.8 mmt in year 2018/19 vs 70.5 mmt seen in April. They raised Brazil's soybean crush to 43.2 mmt in 2018/19 vs 43 mmt, their April estimate.
Technical support is key for most grain and soybean contracts contact you Allendale broker for important chart points.
Fed Cattle Exchange has 568 head offered today at the electronic auction. All the cattle offered are from Kansas and Texas. Trade is expecting a steady to higher trend in cash markets this week. Packer margins remain positive and it is likely they will push to process as many head as possible.
Technical buying on Tuesday lifted futures from an oversold condition. Chart resistance in June contract is 108.00 and support comes in at 102.85. The august futures contract has key resistance at 106.55.
Lean hog futures say headline selling on Tuesday when Mexico announced that they would put a 20% import tariff on US pork if the US goes through with the steel and aluminum tariff.
Cash hog supplies are tightening and weights declining as it seasonal should. The heat forecast for the Midwest later this week will likely stunt weight gains.
Lean hog futures have used the full established trading rang during the last four sessions. Support is 75.20 with resistance at 80.12.
Dressed beef values were mixed with choice up .01 and select down .40. The CME Feeder Index is 139.03. Pork cutout value is up 1.37.