Daily Market Highlights Click below to see the Daily Commentary PDF version http://s3.amazonaws.com/media.agricharts.com/sites/2356/datasheetuploads/dailymarketco mmentary.pdf Friday, June 15, 2018 Hogs: Today's Markets: Jul 18 LEAN HOGS $82.63 1.00 Slaughter 443,000 Aug 18 LEAN HOGS $78.63 0.03 Last Week 445,000 Last Year 433,000 Western Cash $83.24 1.60 WTD 1,782,000 Carcass Cutout $82.40 0.71 WTD Last Wk 1,789,000 CME Index $80.09 1.38 WTD Last Yr 1,709,000 Lean Hogs are trading higher. The surge higher in pork cutout values has been the primary focus recently, as the trade has been able to look past the threats of lower exports. However, there is a significant threat to pork exports in the months ahead, mainly from Mexico and China. The threat of intensified tariffs with China may spark more long liquidation selling in hogs today. Ideas that the market is overbought and that the Administration could announce more tariffs this week or early next, which might spark more retaliatory tariffs on US agricultural commodities, helped to pressure. Trade war escalations plus the overbought condition might spark more long liquidation selling over the near term, but strong pork product prices might help provide some support. July 18 Hogs: Technicals Support Resistance Aug Hogs 77.65 79.57 76.87 80.75
Grains: Today's Markets: Jul 18 CORN $3.68 $0.05 Upcoming Reports Sep 18 CORN $3.77 $0.05 Crop Progress 18-Jun Dec 18 CORN $3.89 $0.05 Jul 18 SOYBEANS $9.29 $0.01 Aug 18 SOYBEANS $9.35 $0.01 Sep 18 SOYBEANS $9.41 $0.01 Grains are trading lower. Crude is lower. US China tariff deadline today. US stocks are lower. For the week, Winter Wheat prices are down roughly 24 cents for SRW, down 24 in the HRW, and down 17 for HRS; Corn is down 16; Soybeans down 52 cents; Soymeal down $15.00, and; Soyoil down 45 points (December crushing margins are up roughly 13 cents around $1.50, oil-share unch at 30%). The U.S. Midwest weather forecast has limited rainfall for the weekend but, close to average totals next week. Temps continue average to above. The U.S. Southern Plains weather forecast has soaking rains to most areas the early to middle of next week. Temps running above average. For the week ended June 7th, U.S. All Wheat sales are running 35% behind a year ago, shipments 57% behind with the USDA forecasting a 6% increase on the year. U.S. Corn sales were running 3% ahead of a year ago, shipments 8% behind with the USDA forecasting unchanged on the year. U.S. Soybean sales were running 5% behind, shipments 9% behind with the USDA forecasting a 5% decline on the year; soymeal sales 13% ahead of a year ago, shipments 12% ahead with a 13% increase forecasted. Mexico could strike at $4 billion in annual imports of U.S. corn and soybeans if President Donald Trump escalates a trade spat with new tariffs, officials told Reuters this week, and it is studying how to reduce the pain of such a move. Deep in the heart of Trump country, Environmental Protection Agency chief Scott Pruitt is being met with protests by farmers and ethanol producers concerned that he is undermining the industry with his strong support of oil and gas. Mexico could strike at $4 billion in annual imports of U.S. corn and soybeans if President Donald Trump escalates a trade spat with new tariffs, officials told Reuters this week, and it is studying how to reduce the pain of such a move. Funds sold 7,000 soybeans, bought 3,000 soymeal, 6,000 wheat and 30,000 corn and bought 2,000 soyoil on Thursday. Funds are estimated to be long 5,000 soybeans, long 80,000 soymeal, net short 70,000 soyoil, long 39,000 corn and long 22,000 wheat. Technicals Support Resistance July Corn 3.60 3.65 July Beans 9.00 0.26 July Meal 335.00 345.00
July 18 Corn July 18 Soybeans Cattle: Today's Markets: Jun 18 LIVE CATTLE $106.40 0.15 Slaughter 116,000 Aug 18 LIVE CATTLE $102.13 0.25 Last Week 121,000 Last Year 119,000 Choice $222.08 (1.82) WTD 468,000 Select $201.97 (0.33) WTD Last Wk 477,000 CME Index $140.70 (0.32) WTD Last Yr 473,000 Live Cattle are trading higher. The sharp break in the beef market this week leaves a bearish tilt to the cash market outlook for the weeks ahead. A weaker tone to cash markets this week, weakness in beef prices, and the outlook for a very hot and humid weekend in the Midwest (poor demand weather) were seen as reasons for the selling yesterday. Cumulative sales for 2018 have reached 515,100 tonnes, up 22% from last years pace. Weekly sales to China are still small, but they did reach 229 tonnes last week, which was the most they have been since Sep and the second highest since China resumed its imports. Technicals Support Resistance Aug Cattle 100.62 103.10 99.75 104.70
June 18 Cattle Weather
Economy: July 18 Crude Oil US Dollar Index
US Dollar $94.75 ($0.03) Jun 18 EURO FX 1.16185 $0.003 Sep 18 S&P 500 INDEX 2772.4 ($16.000) Jun 18 DOW JONES $24,985.00 ($200.00) Jul 18 ETHANOL $1.42 $0.01 Jul 18 Crude Oil 65.51-1.38 Nov 18 Crude Oil 64.25-1.29 Jul 18 Gold 1284.6-21.6 Jul 18 Natural Gas 3.016 0.051 Your Partner And Resource For Good Marketing Decisions For any questions please feel free to call us at (507) 449-2030 Copyright 2018 Professional Ag Marketing, Inc. Reproduction in any form without the expressed written consent of Professional Ag Marketing, Inc. is strictly forbidden. This data is provided for information purposes only and is not intended to be used for specific trading strategies without consulting Professional Ag Marketing Inc. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Past results are no indication of future performance. All information is based upon data that is believed to be reliable, but its accuracy is not guaranteed.