CLOSING AGS 6/18/13
Cattle: Cash cattle last week: $120.00-$121.00 and $195-196.00 dressed; boxed beef mixed on light midday volume; futures lackluster again in between its current trading ranges. As usual, there’s not much optimism cash cattle will strengthen up and that recent beef increases merely Father’s day re-fill business.
Hogs: Interior hogs not well established; pork midday cut outs strongly higher early; futures strongly higher on renewed optimism pork demand will hold firm and not top out near term due to light numbers and possibly export demand. Maybe.
GRAINS & OILSEEDS:
Corn: Interesting change of spreads: July led the upside early making a new swing high and filing its gap at $6.76; later session July petered out a bit but then September and back months led the rally. What I mentioned before is that IF late plantings mean little fresh corn early then September might also benefit from perceived tightness of old crop this summer. We’ll watch it.
Soybeans: There also seemed a change in the corn/bean spreads as while corn rallied later session the beans were quiet and limp in comparison. Not sure if later plantings here will have the same old crop effect on the August as corn but weather looks generally favorable for catch-up plantings and in-ground development.
Wheat: Whatever support here seemed strictly corn related again. Global conditions remain favorable and little visible export demand here; and I guess the psychological negative of the western white wheat ban also at play. Of interest: USDA says Saudi imports will rise on lowered production to 2.5mln.m/t’s up 13% s the government starts its planed phase out of all wheat production by 2016.