CLOSING AGS 6/24/13
Cattle: Cash cattle last week: $120- $121.50 and $194-195.00 dressed; boxed beef mixed on light midday volume; futures post an inside day on the charts in a consolidation from Friday’s upside breakout. The rally however was held back by its nearness to the live. Nonetheless we are watching if for the first time in months futures can go to parity and above cash, looking for better news. Cattle on feed report not a significant factor; though the marketing number/cold storage stocks numbers might have been.
Hogs: Interior hogs east lower, west unquoted early; pork midday cut outs steady early; futures post news highs for the move and as usual, disregards the record high monthly pork inventory numbers. However, Friday’s rally was accompanied by declining open interest and might have followed through today.
GRAINS & OILSEEDS:
Corn: Under pressure all day with the July getting some light underlying support time to time from July beans. Weather the major feature with conditions largely favorable though heavy rains in some areas added underlying support to the December. Inspections low at 5.8mln.vs. 14.1mln. wk.
Soybeans: July the star performer. As mentioned pre-opening, July merely retraced itself to the low end of its broad, volatile trading range and in the process picked up light new buying/shortcovering. New crop pressured by general favorable weather and Chinese economic concerns. Inspections 7.8mln. vs. 2.7mln. wk.
Wheat: Sharply lower on a combination of light export demand; unresolved GMO finding (Monsanto apparently thinks it was not just a rare coincidence); favorable global crop conditions, supplies; and our U.S. harvest kicking in as well.