CBOT futures closed higher with the rally started by soybean futures. Market support came from soybean export sales announcements and ideas that Corn Belt rainfall will be lighter than expected on Friday. Wheat futures closed up for the fourth straight day on short-covering amid ideas that more of the foreign supplies are dropping in quality. With the spec funds holding a large short position, a corrective rally isn’t surprising when corn and soybeans are moving up.

Today’s USDA crop ratings dropped corn by 2 points but made no change to soybeans. USDA’s next Crop Production Report comes on August 12.

Corn Conditions – 18 States .        Good/Excellent Poor/V.Poor This Week       73% 7% Last Week        75% 6% Last year         64% 11%

In Dough stage: 36% vs 29% average

Soybean Conditions – 18 States .         Good/Excellent Poor/V.Poor This Week        71% 6% Last Week        71% 6% Last year         64% 9%

Setting Pods: 57% vs 48% average

Winter Wheat Harvested – 18 States 90% this week versus 86% last year and 85% for 5-year average.

U.S. Pasture: 50% good/excellent vs 52% last week and 45% year ago. 18% poor/v.poor vs 17% last week and 26% year ago.

Cattle closed mostly higher and not far off the day’s highs. Buying improved after initial weakness at the opening bell. Positive price action in CBOT futures and financials may have been supportive. Boxed beef values closed the day nearly unchanged from Friday – Choice at 263.22 and Select at 258.03.

Lean Hog futures have two stories to tell – the bearish August LH contract and strong gains in the deferred contracts. Funds are long hog futures and with delivery approaching, traders need to liquidate the August positions. Wholesale pork was stable today with FOB Plant Pork cutout up .50 to 127.82/cwt.

Corn Sep +6 359; Dec +7 369; Dec’15 +7 413 Bean Sep +22 1095; Nov +21 1079; Nov’15 +19 1085 Meal Sep +5 361; Oct +5 351 Oil +58 3612 Wheat Sep +10 544; Dec +11 564; Jly +8 604 KC +6 638; MGE +7 623 Oats unch 351 Rice +3 1282

LC Aug +92 15822; Dec -10 15632; Apr +32 15627 FC Aug +70 22097; Oct +75 22035; Mar +140 21150 LH Aug -95 11707; Oct +80 10362; Feb +105 9165 Milk Aug +24 2171; Sep +33 2190

US$ unch

Dow +76 16569 SP +14 1939 NAS +31 4384 Tran +28 8149 VIX -1.99 15.04 -11.7%

WTI +51 9839 Brent +63 10547 Gas -2 272 NG +5 384 HO unch 287 Eth +1 201 Gold -6 1288 Slvr -19 2018

2-yr -.004 0.472% 5-yr -.020 1.653% 10yr -.018 2.487% 30yr -.002 3.294%

KENTUCKY CROP CONDITIONS USDA-NASS, KY Field Office Click HERE for Report

Read today’s University of KY’s news story on the deteriorating KY corn crop by clicking here.

KENTUCKY CASH GRAIN PRICES – Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here

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