AgriCharts Market Commentary

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Corn

May 24, 2017

Corn futures are trading 1 to 2 cents higher this morning after closing 2 1/2 to 5 cents lower on Turnaround Tuesday. The dollar was stronger, and some crop condition ratings were better than expected in individual states. Preliminary open interest data shows some net new selling, up 5653 contracts. Dr. Michael Cordonnier increased his 2016/17 Brazil corn production to 93 MMT, which is shy of the USDA number of 96 MMT. Safrinha crop estimates continue to rise as no major yield threat has developed and the Mato Grosso crop is reaching ear fill. Chinese imports of DDGS during April were down 80.4% vs. last year at 51,523 MT. Corn planting progress in IL, IN, and NE was slightly behind their respective averages, with IA currently ahead of their 5-year average pace.

Soybeans

May 24, 2017

Soybean futures are currently close to UNCH after being mostly 6 to 8 1/4 cents lower on Tuesday. Preliminary open interest rose only 1,233 contracts, suggesting more rotation of ownership than new selling interest. July 17 meal was down $1.50, with soy oil 60 cents lower in the front month. Planting process in NE is lagging the average pace by nearly 9%, with IN, IL, and OH slightly behind average. April soybean imports ran 8.015 MMT for China, which would be 13.4% larger than April 2016.

Wheat

May 24, 2017

Wheat futures are steady to a penny higher this morning in all three markets. They settled 4 3/4 to 5 1/2 cents lower in the nearby contracts on Tuesday. Preliminary OI data for Chicago showed some net new selling with the OI up 1,984 contracts. MPLS was mostly down 4 3/4 to 6 cents, with KC as much as 5 1/2 cents lower. KS winter wheat ratings got a little better last week, but CO got worse. Most states are well ahead of their respective averages for the amount of wheat that is headed, with the northern states slightly behind. Japan is seeking 79,930 MT of US wheat in their weekly MOA tender, with the other 37,870 MT being Australian wheat. Results are expected on Thursday.

Cattle

May 24, 2017

Live cattle futures ended Tuesday mostly lower, with June down 85 cents. Feeder cattle futures were steady to $1.275 lower, as May expires on Thursday. The CME feeder cattle index was up 39 cents on May 22, at $143.27. The OKC cash feeder market had been $2-5 higher on Monday. Wholesale beef prices were lowerin the Tuesday afternoon report, with choice boxes down $2.14 @ $245.74, and select down $1.66, averaging $221.17. Week to date estimated FI slaughter is 231,000 head, up 1,000 head from the previous week and 10,000 head larger than the same week last year. The show lists for today’s FCE auction total 2,684 head. Last week’s prices averaged $135.16 for 1-9 day delivery.

Lean Hogs

May 24, 2017

Lean hog futures were mixed on Tuesday, with June 80 cents higher and July down 2.5 cents. The CME Lean Hog Index for 5/19 was up another 44 cents to $75.89. The USDA pork carcass cutout value was $1.59 higher in the afternoon report, with an average of $90.30. The loin was $1.70 lower, with the rib increasing $7.48 and the butt, picnic, and belly all higher by $3+. The national base hog carcass price was 56 cents higher at $71.06. The WCB was 66 cents higher with IA/MN up 74 cents. WTD estimated FI hog slaughter through Tuesday was 881,000 head, 5,000 larger wk/wk, and is 18,000 head above the same time a year ago.

Cotton

May 24, 2017

Cotton futures are trading 24 to 91 points higher after they settled 50 to 117 points lower on Tuesday with a higher US dollar and continuing technical selling. July futures are getting a little bit of a dead cat bounce off of technical support. The AWP (average world price) through Thursday is 72.44 cents/lb, jumping 3.75 cents/lb from the previous week. TX planting progress increased to 42%, with MS at 72%. During April, China imported 105,170 MT of cotton, 50.3% more than April 2016. The Cotlook A index for May 22 was 25 points higher at 89 cents/lb. The certified stocks level rose to 409,046 bales, the highest level in nearly 3 years.


Market Commentary provided by:

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