CLOSING AGS 6/17/13
Cattle: Cash cattle last week: $120.00-$121.00 and $195-196.00 dressed; boxed beef moderately/strongly higher on light midday volume; futures sharply off their early lows in an apparent light volume trade. The discount to the live and traders still treating the market in a range allowed part of the rally. As mentioned, the ‘basing’ needed to start quickly this morning and is encouraging that it did. I would also have no problem if we get into a mind-set of unwinding hog/cattle spreads i.e. beef picks up some extra business after pork prices have sailed sharply higher. We’ll see.
Hogs: Interior hogs not well established; pork midday cut outs moderately higher early; futures mixed and front months under light pressure most of the session in part on spreads, in part on concern pork might top. What’s more interesting is that August hogs at DISCOUNT found it tough to rally…. Like cattle did for months. Light volume though and prices stayed flat.
GRAINS & OILSEEDS:
Corn: July corn the leader on the entire floor to me: brought bean off their lows and wheat higher on the day early in the session. Nothing news: tight supplies, strong user demand, short-squeeze on light deliverable supplies, late plantings etc., etc.
Soybeans: With corn basically all planted, new crop beans suffered from a very nice weather forecast and lessened weekend rains. July posted a new swing low sub-$15.00 before recovering and the attitude was same as corn again: tight supplies, low deliverables. However, I’ll give the July this: the May NOPA crush much better than expected.
Wheat: Corn ‘saved’ wheat at the low end of its larger trading range after overnight an early weakness. No fresh news but the upside was limited by favorable conditions in the Black Sea, India and a psychological block from the Asian white wheat ban on the U.S.