CLOSING AGS 6/21/13
Cattle: Cash cattle so far: $121.50 and $194-195.00 dressed; boxed beef higher on light midday volume; futures acting very well and might be confirming a switch by bulls to cattle vs. hogs which would be due to expected better beef demand into/after 4th of July.
Hogs: Interior hogs mixed early; pork midday cut outs strongly higher early; futures under modest pressure most of the session. Surprisingly, another sharp pop in the packer cut outs failed to move the hogs higher. Certainly seemed like at least unwinding of the hog/cattle spreads. High pork prices and over saturated pork demand might be ready to lose some of its glitter.
GRAINS & OILSEEDS:
Corn: Looked like light volume trading and a consolidation trade 1st then unwinding of the old crop/new crop spreads the rest of the time. Some talk of an increase in cash movement also pressured the July.
Soybeans: Dull session amid relatively modest trading ranges. The situation in China seemed to have at least added some concern over their ability to keep large % expansion of bean imports at their highs. Weather also added some pressure with talk of a significant ‘catch-up’ of late plantings having been made and then for the developing crop warmer temps and scattered t-storms.
Wheat: Pretty quiet for the wheat in an evident light volume trade and very narrow ranges. There also might have been some light corn/wheat spread unwinding for support. Upside limited though for the many reasons outlined here earlier.