Corn – Funds sold 59K, now short 337K or 99% of record, GTE +1% to 68%, Beryl rain totals increased
↔ Funds sold another 59K, most of that likely happening on the June 28th report, now short 99% of record, this means we can now expect the fund selling to slow soon but it doesn’t have to be today
↓ Yesterday’s selling came on an open interest increase of 19K, a sign funds are still selling
↓ GTE was expected to remain steady but instead was raised 1% to 68%
↓ Midwest rain totals from Beryl increased this morning, most areas needed this, rains move in today
↑ The 400 area should offer better support, there is still heat (but reduced) in the 3 – 10 day forecast
Beans – Funds sold 11K, now short 141K or 82% of record, GTE +1% to 68%, heat reduced this morning
↓ Funds sold 11K, now short 82% of record, more selling is possible if they intend to reach a similar position as what they have in corn, fund selling is more likely in beans now compared to corn
↓ GTE was expected to be steady and instead came in +1% to 68%
↓ Heat was reduced again this morning, a few days ago the heat was expected at +15 to +20 degrees, there is still heat in the forecast but this morning most areas are +7 to +12 degrees
↑ The 1100 level won’t necessarily put in a low for Nov but general better support is expected at that level or lower, in the least it should slow the slide
Wheat – Still stuck between seeing better demand and seeing higher than expected RU yields
↑ Three weeks of much improved exports still suggests demand improvement and provides support
↓ Early Russian yield reports are stronger than expected causing occasional selling
↓ Funds sold 3K, now short 74K or 46% of record, funds not as active as compared to corn/beans
Cattle – BB neutral yesterday, showlist +11K, trade currently the most cautious since last Fall
↔ Yesterday’s PM BB was choice +0.04 Select -0.34 packer BE at 201.67, packer cushion $7.64
↔ The PM BB was not as strong as the AM report but still mostly neutral
↔ The average cash trade report showed all areas +$3.50 last week when most were likely expecting close to steady, this also cuts packer profits near $7 where higher cash can’t be assumed yet this week
↔ Futures are priced at the most cautious level since last December, currently priced $7.50 under last
week’s cash trade price, even a steady cash trade this week would be seen as quite supportive