Market Closes - June 22, 2020

Posted on Jun 22, 2020

Corn Jly -4 328 (328-32); Dec -3 342 (340-45)

Bean Jly unch 876 (872-80); Nov -1 879 (877-81)

  Meal unch 286 (286-88)

  Oil -17 2835

Wheat Jly +4 485 (478-86); Dec +4 498

  KC +3 431; MGE -5 519

Oats -3 303

Rice -2 1400

 

LC Jun -30 9440; Oct -27 9857; Dec -32 10252

FC Aug -80 13175; Oct -67 13417; Jan -55 13430

LH Jly -162 4682; Oct -95 4990; Dec -92 5122

Milk Jun +1 2100; Jly +79 2197; Aug +74 2001

 

CBOT futures closed widely mixed with corn lower and wheat higher. Weekend rains and a lack of concern for damaging weather weighed on corn and soybeans less so. However, tonight’s NWS outlook shows above normal temperatures in the 6-10 day and the 8-14 day periods. CLICK HERE for Maps. Corn was supported by last week’s corn export inspections which increased 40% from the previous week. Soybeans had disappointing inspections and no China purchases were announced. The rally in Chicago and KC wheat futures was short-covering after two weeks of trending lower. Winter wheat harvest is progressing through Kansas and is 29% complete nationwide (OK & TX are 85% harvested). Kentucky is 55% harvested.

U.S Crop Progress
Corn is 2% silked vs N/A% last week and 2% 5-yr avg.

Soybeans are 5% blooming vs N/A% last week and 5% 5-yr avg.

Winter Wheat Harvest
   29% harvested, compared to 26% 5-yr avg.

 

U.S Crop Conditions
Crop        Good/Exc   Poor/V.Poor

Corn               72%         5%
Soybean         70%         5%
Winter Wheat  52%        17%
Pasture           43%        25%

 

LC Jun -30 9440; Oct -27 9857; Dec -32 10252

FC Aug -80 13175; Oct -67 13417; Jan -55 13430

LH Jly -162 4682; Oct -95 4990; Dec -92 5122

Cattle futures closed lower on lack of cash trading, long liquidation, and Friday’s Cattle on Feed Report that was considered negative. The report said May marketings of 1.50 million head were 28 percent lower than a year earlier, and the lowest for May since this report began in 1996. This resulted in the June 1st on-feed inventory of 11.7 million head, down 0.5% from a year ago, and the second highest June 1st inventory since 1996.

Boxed beef cutouts closed little changed – Choice up .34 to 214.06 and Select up .39 at 204.30. The Choice-Select spread is 9.76. A week ago, Choice was 228.61 and Select was 214.35/cwt. Cash trade was too light to establish a trend, but a few trades at $95/cwt is lower than last week’s $98-102/cwt. Today, USDA reported an average price of $152.98/cwt for steers, dressed basis. Formula purchases averaged 878 pounds at $169.14/cwt.

Lean hog futures closed sharply lower despite a huge 6.98/cwt gain in the pork cutout at midday. However, that cutout gain was gone by the afternoon quote. FOB Plant Pork edged up .20 to 64.84. Loins fell nearly 3%, while the value of ham, ribs and picnics climbed over 2.5%. Traders may be hesitant to buy LH ahead of Thursday’s USDA Quarterly Hogs and Pigs Report and news of China’s rejection of some U.S. chicken suppliers.

COLD STORAGE REPORT
June 22, 2020  - Released after futures market closed.
    Total frozen poultry supplies on May 31, 2020 were down 5 percent from the previous month and down 4 percent from a year ago. Total stocks of chicken were down 8 percent from the previous month but up 3 percent from last year.

    Total red meat supplies in freezers were down 18 percent from the previous month and down 13 percent from last year. Total pounds of beef in freezers were down 13 percent from the previous month but up 2 percent from last year. Frozen pork supplies were down 24 percent from the previous month and down 26 percent from last year. Stocks of pork bellies were down 27 percent from last month and down 8 percent from last year.

U.S. May Milk Production down 1.1 Percent
   (June 18)  Milk production in the United States during May totaled 18.8 billion pounds, down 1.1 percent from May 2019. Production per cow in the United States averaged 2,011 pounds for May, 31 pounds below May 2019. The number of milk cows on farms in the United States was 9.37 million head, 37,000 head more than May 2019, but 11,000 head less than April 2020.

 

US$ -.6% 97.03

Dow +153 26025

SP +20 3118

NAS +110 10056

Tran -16 9062

 VIX -3.35 31.77

 

WTI +90 4073

Brent +80 4299

Gas +2 129

NG unch 166

HO +1 122

Eth +2 126

Gold +13 1766

Slvr +5 1790

 

2-yr +.006 0.194%

5-yr +.011 0.338%

10yr +.010 0.709%

30yr -.002 1.468%

May Egg Production Down 5 Percent
     U.S. egg production totaled 9.10 billion during May 2020, down 5 percent from last year. Production included 7.86 billion table eggs (down 6.5%), and 1.24 billion hatching eggs (up 1.6%).

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