Corn – July was pulled under 2 month lows by beans, overnight looking for a profit taking Friday
↓ July took out 2 month lows, beans continued to spill over pressure as they have done for a month now and it was finally enough to take corn under 438 ½
↓ Exports recovered to 566K but that still does not reach the moderate level of 800K – 900K
↔Rains from the current system wrap up today in the east then days 2 – 7 offer another planting window to keep pace at or close to normal
↑ If beans see a profit taking Friday then it is likely that corn will as well
↔Major changes from funds are not expected on today’s COT report, still close to 77% record short
Beans – July has fallen 37 ¾ through yesterday, at least some Friday profit taking is possible
↑ Overnight anticipating at least light Friday profit taking after a 37 ¾ cent setback this week
↑ Yesterday’s exports recovered better than expected to 749K, more 8 AM sales reports are needed
↓ The daily discussion of BRA cash selling continues and with open interest down 12K that looks likely, it is difficult to assume funds adding to shorts when open interest moves actively lower
↔The only chart level left for July is now the contract low of 1140 ½
↔Like corn, no major changes expected from funds on the COT report, still close to 81% record short
Wheat – The one market not affected by cash selling, KC continues a slow grind higher
↑ With cash selling not offering an influence like seen in corn/beans KC wheat is focusing on HRW weather which is on the drier side until day 8 of the forecast
↑ It is likely most in trade will assume another 1% drop from the GTE rating Monday
↓ CHI wheat is much choppier than KC, was moving sideways but another week of anticipated poor exports caused pre selling followed by the report which was indeed poor at 130K
Cattle – Another day of resistance seen in June at 176, the COF report is not expected friendly today
↔Yesterday’s PM BB was choice -1.01 Select -1.64 packer BE at 185.76, packer cushion $3.85
↑ It is common for speculators to only focus on Placements which are expected to be 93.0
↓ While Placements are supportive longer term both On Feed expected 102.1 and Marketings expected at 88.1 suggest there may be some downside in cattle during summer before Placements add support
↓ BB moving lower is now not only neutral, it has turned to a bearish influence again which is likely to be seen after today’s COF report, new lows for the move in BB and now packer profits under $4
↔Yesterday saw a steady cash bid in NE but not reported cash trades, as always in cash news when we hear no news at all on cash trades it is commonly bad news