Cattle: Cash cattle so far $125.00 Tx./Iowa; boxed beef lower on moderate midday volume; futures remain tailored made for the old CME livestock members: volatile sideways action. For us it’s more a boring trade but the luxury of being neutral, for good reasons as mentioned, position-wise we can look elsewhere.
Hogs: Interior hogs early all unquoted; futures keep holding up at premium while cattle keep pressured at discount. If beef demand is cancelled due to high prices of beef then certainly pork at cheaper prices must be found.
GRAINS & OILSEEDS:
Corn: Looked like more unwinding of the old crop/new crop spreads; enough cash movement satisfied light demand; Drought Monitor said drought “severity” down sharply especially in Iowa and Minn.; for the Midwest 11.3% vs. 20.9%; NOAA inconclusive with above normal temps. (not drought stuff), and with them saying no good clues for either a El Nino or a La Nina this summer; weekly export sales improved but hardly running out of supplies.
Soybeans: New swing highs before a significant sell-off in a thin trade. The ‘squeeze’ in the May predicated on low stocks and slow South American loadings though no confirmation of China buying rumor except for the new crop overnight (was supposed to be old crop).
Wheat: Under pressure as May wheat again rebuffed over $7.00/bu.; weekly export sales improved but at lower price levels; some easing of crop concerns in parts of the southwest; Black Sea conditions satisfying; northern Europe warming up, etc., etc. Again in my view, globally our wheat problems are a “local” problem.