Eyes Turn To WASDE

Today’s report at 11 AM is expected slightly bullish corn, neutral beans and slightly bearish wheat. Active cash selling has been seen going into this report but with strong exports/ethanol for corn there is little reason to expect bearish news. For beans exports are expected lower and crush higher to result in a neutral report. For wheat poor exports are expected to raise carryout.

Cattle – BB setting back again, IA cash trades $2 lower, futures already priced $5 under last week cash

↔ Yesterday’s PM BB was choice -3.86 Select -3.88 packer BE at 188.67, packer cushion $4.55

↔ Cash traded $2 lower in IA yesterday, most of the futures reaction is likely already factored in given

that futures are back to being $5 under last week’s cash trade

↓ After a sizable bounce a couple days ago, BB gave back most of the recent gains to put packer profits

back at a concerning level of $4.55

↔ The most important chart level to watch is the recent low for June at 171.40, following that the only

remaining chart level left is the contract low at 162.775

↔ After yesterday’s setback BB is still higher on the week but just slightly, we should certainly view BB

as the #1 influence going forward

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