CLOSING AGS 6/19/13
Cattle: Cash cattle last week: $120.00-$121.00 and $195-196.00 dressed; boxed beef lower on strong midday volume; August nearing range highs in quick manner. Part of it might be a strong seasonal trade to buy August cattle/sell August hogs; part of it general Ag commodity buying over FOMC possible decisions (i.e. out of financials into commodities).
Hogs: Interior hogs not well established, western area dn. $1.97; pork midday cut outs strongly higher early; futures post good gains led by the July which saw a bullish resurgence on a big jump in packer cut outs yesterday and that with a lean index over $103.00.
GRAINS & OILSEEDS
Corn: Well, our observation about a switch in the spreads came about though new crop gains seemed rather unexpected (wetter outlook?); also gains part of a wide agricultural buying stance ; technical buyers on break out; unwinding bean/corn spread; Informa lowers plantings to 95.62 dn. 1.9mln.acres on month, down 2.02mln. from last USA.
Soybeans: Modest gains old crop and sharply higher new crop values. I understand the change of spreads as mentioned but the rest came out of nowhere perhaps. Informa acreage: 77.756nln. up 558,000 on month and up 630,000 vs. last USDA (already hearing corn’s not done losing and beans not done increasing acres.
Wheat: Nice whipsaw. While the corn rally routinely supports wheat there seemed more a hand: oversold, holding range lows, crop planting delays north, harvest delays southwest. Informa All-Wheat acres 55.5mn. dn. 2% on year (spring individually off 4%). However I did learn also that CHINA was rumored to have bought a slug of U.S. wheat.