Corn Falls as Weather Outlook Improves
Corn for July delivery fell 2.2% to $6.60 1/2 a bushel amid a weather outlook for freshly planted Midwestern crops that improved throughout the day. A forecast showing very hot and dry conditions in the Midwest in the coming days was tempered later in the day, taking support away from grains futures.
Additionally, damage suspected to have happened in last weekend's cold and wet weekend doesn't appear to be extensive, said Karl Setzer of AgriVisor.
Soybean Oil Prices Top All-Time Highs -- Market Talk
0953 ET - Soybean oil futures on the CBOT opened trading today above 71 cents per pound, which is an all-time high -- beating the previous high set in March 2008. Tightness in the vegetable oil market has been a factor pulling prices in soybeans higher, and is a support for futures prices today. "Markets trading higher overnight with strength in bean oil spilling into the beans, which are pulling the corn along," says Doug Bergman of RCM Alternatives. Soyoil futures have pared gains since the market opened, with the most-active contract up only 0.3%. Soybeans meanwhile are up 0.5%. (firstname.lastname@example.org; @kirkmaltais)
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Farmers' Costs Rise in May -- Market Talk
12:22 ET - While prices for crops like corn and soybeans have been on the rise this year, US farmers are seeing higher costs eat into their profit margins, the Federal Reserve Board says in a report this week. In the Midwest, costs for farmers are on the rise, even though higher prices have given farmers reason for optimism. "Supply chain issues are raising many producers' costs although higher commodity prices have helped generate higher incomes, maintaining profit margins," the Fed says. Overall, farm incomes rose in 2Q, according to the report. (email@example.com; @kirkmaltais)
Stronger US Dollar Sinks Grains -- Market Talk
12:55 ET - Grains futures on the CBOT are sinking in response to an uptick seen in the US dollar today. The WSJ Dollar Index is up 0.7%, which is pressuring grains. "Wheat is probably the most susceptible to a strong dollar on the global market, as it is grown in most areas of the world," Arlan Suderman of StoneX says. "As such, a strong dollar makes it difficult for US wheat to compete." Wheat futures are leading grains lower, with the most active contract down 1.8%, corn 1.7% lower and soybeans off 0.5%. (firstname.lastname@example.org; @kirkmaltais) US Rail Shipments of Grains Higher -- Market Talk
US Rail Shipments of Grains Higher -- Market Talk
12:51 ET - Shipments of US grains via railways are unchanged from last week, but are still higher than this time last year, according to USDA data. In the USDA's latest grains transportation report, rail shipments of grains in the US totaled 25,396 grain carloads during the week ended May 22, unchanged from the previous week but 16% more than last year. However, shipments via barge fell 16% from the previous week's report, totaling 860,760 tons for the week ended Saturday. (email@example.com; @kirkmaltais)
Hogs Turn Higher Along With Cutouts -- Market Talk
1443 ET - After starting trading lower Thursday, lean hog futures on the CME turned the corner, closing today up 0.4% to $1.19325 per pound. The uptick seen in futures comes as pork cutouts posted gains through midday -- with carcass values rising $2.24 per hundredweight to $131.83 per cwt, according to the USDA. Pork loins, butts, and bellies were also gainers today, although rib cutouts shed $21.78 per cwt. Meanwhile, the effect of the JBS cyber-attack appears to have been factored into prices at this point. "As the slaughter estimates from USDA showed yesterday, many JBS beef and pork plants were up and running but production was still well below capacity as they operated single shifts," says Steiner Consulting Group. Live cattle futures closed down 0.7% to $1.192 per pound. (firstname.lastname@example.org; @kirkmaltais)
(END) Dow Jones Newswires