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AgUpdate - Marketwatch
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CME Group Futures settlements (preliminary) 5/7
  Settle Change High Low
May corn 7.72 3/4 +13 1/4 7.75 7.55
Jul corn 7.32 1/4 +13 1/2 7.35 1/4 7.15 1/2

Dec corn

6.36 1/2 +11 6.38 6.18 1/4
May beans 16.21 +15 1/2 16.30 1/4 16.02 1/2
Jul beans 15.89 3/4 +20 1/4 15.99 1/2 15.62 1/4
Nov beans 14.33 1/2 +24 1/2 14.43 1/4 14.06 1/2
May soy meal 442.5 +14.8 442.7 426.8
Jul soy meal 441.8 +14.5 443.4 425.5
Aug soy meal 435.8 +14.2 437.4 420.4
May wheat 7.73 1/2 +9 1/4 7.72 7.60 1/2
Jul wheat 7.61 3/4 +8 1/2 7.67 1/2 7.45 1/4
Sep wheat 7.62 1/4 +8 7.67 3/4 7.46 3/4
Ethanol Futures settlements (preliminary)
  Settle Change High Low
Jun 2.340 UNCH
Jul 2.340 UNCH
Aug 2.260 UNCH
         

Grain, equity markets higher to close out week

The rallies keep coming for the grain markets as forecasts are hot and dry in Brazil, Total Farm Marketing said.

The Dow reached a record high for the second session in a row, while the S&P 500 also made highs, CHS Hedging said. “Investors believe that a friendly fed policy will continue due to the slower job recovery.”

That comes after this morning’s jobs report, which showed only 266,000 jobs were added in the month of April and unemployment rose to 6.1%.

Corn

Corn is trading into new highs “on both the old and new crop contracts,” CHS Hedging said. “Concerns about the weather are growing as drought conditions in the west move east.”

“Talk of new fund money buying hard assets including corn due to a hedge against inflation is just adding to the bullish fundamentals,” ADM Investor Services said. “Trade will be watching to see if USDA lowers Brazil crop and raise China imports.”

Soybeans

Soybeans are finding support from “stout demand” and concerns about rapeseed areas in the EU, Total Farm Marketing said. “World veg oil markets continue to surge pushing futures higher.”

“With a red-hot corn market due to a strong export program,” soybean futures are trying to find acres, CHS Hedging said. The possibility of fewer soybean acres is supportive to the market.

Wheat

Wheat is support by the drought in the U.S. plains, which “continues to be the big story in wheat,” Total Farm Marketing said.

The USDA is forecasting “record global wheat feeding,” ADM Investor Services said. “Wheat has to be a follower of corn on upside as to insure too much wheat feeding.”


Check your area cash bids for grains

Enter a zip code in the Grain Bid Lookup box to see cash bids at specific locations in your area.


Grain futures prices


Lean Hogs CME — Close 5/7
  Settle Change High Low
May 111.975 +.575 112.175 111.500
Jun 112.850 -1.625 114.825 112.600
Jul 113.550 -1.100 115.025 113.450
Live Cattle CME
  Settle Change High Low
Jun 116.025 +.550 117.350 115.625
Aug 118.850 +.375 120.125 118.700
Oct 123.450 -.025 125.350 123.350
Feeder Cattle CME
  Settle Change High Low
May 131.725 +1.250 134.350 130.175
Aug 144.275 +.875 147.375 142.950
Sep 146.050 +.500 148.975 145.125

Hog futures may have found a top

Hogs close “sharply lower” on the day to close out the week, The Hightower Report said. This came after posting another contract high on the day, suggesting a “significant top” is in place, they said.

Cattle slaughter for this week came in at 638,000 head, down 11,000 head from last week, but up from last year’s mark of 476,000 head.

Lean hog slaughter was pegged at 2.408 mln head, down 46,000 head from last week, but up 600,000 head from this stretch last year.

Hog futures may have found a top

Hogs close “sharply lower” on the day to close out the week, The Hightower Report said. This came after posting another contract high on the day, suggesting a “significant top” is in place, they said.

Cattle slaughter for this week came in at 638,000 head, down 11,000 head from last week, but up from last year’s mark of 476,000 head.

Lean hog slaughter was pegged at 2.408 mln head, down 46,000 head from last week, but up 600,000 head from this stretch last year.

Lean hogs

In weighted average negotiated prices for barrows and gilts, USDA reported;

  • National carcass base down $2.72 to $113.70/cwt.
  • National live was down 45 cents to $88.94
  • Iowa-Minnesota carcass base was reported at $121.76

USDA reported carcass cutout values this afternoon fell 7 cents to $113.79/cwt.

“Tightening supplies will keep packers searching and bidding aggressively,” Total Farm Marketing said. They said today’s price action came on profit-taking heading into the weekend.

Today’s price action came despite a “collapse” of the U.S. dollar and strength in most other markets, The Hightower Report said. “Ideas that China import demand for meat and for pork will taper off as the year progresses has helped to pressure.”

Cattle

Boxed beef cutout values this afternoon were lower on Choice and higher on Select, USDA said.

  • Choice fell 49 cents to $305.88/cwt.
  • Select went up 91 cents to $290.27.

There were no reported negotiated cash sales in Nebraska or Iowa/Minnesota today, USDA said.

Packers are needing cattle, Total Farm Marketing said, which may cause an increase in bids next week.

Buying helped cattle close higher today as the “red-hot” beef market is supporting futures, The Hightower Report said. “Talk that cash cattle prices have stabilized this week and have the potential to trade higher in the next few weeks.”

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These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. Commodity trading involves risks, and you should fully understand those risks before trading.


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