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Stewart-Peterson Market Commentary

Closing Commentary - June 3rd, 2020

 

Top Farmer Closing Commentary

CORN HIGHLIGHTS: Corn futures closed quietly in another day of rangebound trade. Warmer weather is helping most of the crop grow rapidly. Most futures contracts traded between 2-1/2 and 3 cents for the day. A lack of new news and apparently traders concentrating their efforts in other markets allowed corn to continue to drift. By day’s end, most contracts finished unchanged. Nearby July futures closed at 3.24 down 0-1/4 cent and December up 0-1/4 at 3.38-1/4. Ethanol stocks dropped to 22.5 million barrels, down from 23.2 million the last week and down from 22.6 million last year. Ethanol production rose to 765K barrels per day in the week ending May 29, up from 724K last week, but down from 1,044K the previous year. Ethanol use of corn last week was an estimated 77.4 million bushels, up from 73.3 million the previous week, but down from 109.2 million three months ago and down from 104.1 million in the same period last year. This marks the sixth consecutive week of additional usage. Yet, the market is focused on crop conditions and, with managed money remaining heavily short, the inability to rally through nearby resistance at the 40- and 50-day moving averages, along with good weather, is keeping prices in check.

SOYBEAN HIGHLIGHTS: Soybean futures closed near the high of the day with gains of 5-1/2 to 7 cents. July futures lead today’s gains, closing at 8.57-1/2. New crop November gained 5-3/4 cents, closing at 8.66-1/4. Weakness in the US dollar and strength in the Brazilian real were the big stories today helping to provide underlying support, as US beans are now competitive or even considered undervalued compared to Brazil. An announced export sale to China this morning was also viewed as supportive despite tensions rising between the two countries. As we look ahead, we see a firming stock market, strengthening energy prices, and more people going back to work all helping to provide a more optimistic view. Most importantly, however, is the need for near ideal weather conditions in the US, as projected carryout remains somewhat precarious at near 400 million bushels. It is likely bean acres will rise from the March estimate, however, we’re not convinced there was a mass movement of corn to bean acres as corn planting went very well. Usually when corn planting goes well, the move to beans is minimal.

WHEAT HIGHLIGHTS: July Chi wheat closed up 4 cents at 5.12, while July KC wheat was up 7 at 4.59 3/4. Wheat showed gains today due to a rise in Russian prices. As one of the US largest competitors, rising prices in Russia leaves wiggle room for US prices to move upward as well. Export numbers from the USDA tomorrow are expected to show anywhere from 150,000 mt to 600,00 mt in comparison to last week’s exports of 706,300 mt. The dollar has continued to fall post-Memorial Day weekend, closing at $97.28 today, also lending support to market for the day.

CATTLE HIGHLIGHTS: Cattle markets recovered from Friday’s losses with moderate gains in front month contracts. June cattle finished at 95.450, up 0.150, while the August live cattle contract finished up 1.150 to 97.350. Cash cattle trade was still developing today with the majority of reported trade at 117.00, down slightly from last week but within the range posted last week from 115.00 – 120.00. Retail values continued to fall with Choice carcasses falling to 300.01 (-18.72), and elect dropped to 279.66 (-10.92). Falling retail values have made the market cautious, but packer margins are still strong and very able to support cash prices. Cattle slaughter is estimated at 114,000 head on Wednesday, down just 4,000 from last week. Slaughter capacity is getting back to full capacity, but the market still needs to work through supplies of backed up heavy weight cattle.

LEAN HOG HIGHLIGHTS: Hog markets finished mixed in Wednesday’s session with the selling pressure in the front month contracts. June hogs traded the 3.750 limit lower, finishing at 48.650, while July hogs lost 1.40 to 53.475. A strong drop in afternoon retail values carried over into the June market on Wednesday. In addition, a cash trend staying softer brought selling pressure into the June futures, posting its lowest close since April 23. The backup of slaughter-ready hogs weighs heavily on the cash market, and with retail carcass value back in line with last year, pork processing margins have quickly tightened. Total slaughter capacity is running near 80-90%, which with new COVID-19 variables, may be near its peak. It will take time to work through the buildup of slaughter hogs. Packing plant are likely bringing in strong weekend slaughter runs to work through the inventory. This keeps the hog market on the defensive in front month contracts. Slaughter was estimated at 429,000 head on Wednesday, down approximately 50,000 from last year. Weekly export sales on Thursday morning may help set some direction on price going into the weekend.

 

The scale in Dysart will be closed for maintenance the afternoon of June 5th till the morning of June 8th. Sorry for an inconvenience!

 

Tama-Benton Cooperative Locations and Office Hours 

 

Dysart- 319-476-3666

Office Hours

Monday-Friday 8:00-4:30

 

Vinton 319-472-4791

Office Hours

Monday-Friday 8:00-4:30pm

 

Clutier 319-479-2242

Office Hours

Monday-Friday 8:00am-4:30pm 

 

All Grain Settlements are now completed at the Dysart Office. For your convenience Grain Checks and Contracts may be printed at the Vinton or Clutier locations. 


 CR PROCESSOR HOURS   

THURSDAY JUNE 4TH

ADM  5am-3pm

INGREDION  5am-NOON

STARCH  7am-1pm

CARGILL BEANS  BY APPOINMENT

 

THESE HOURS ARE POSTED FOR YOUR CONVENIENCE.SUBJECT TO CHANGE WITHOUT NOTICE.

BE PREPARED FOR EARLY CLOSING WITHOUT NOTICE DUE TO WEATHER, FLOODING, OR DOWNTIME.

Please report Direct Shipment Loads Promptly to the Dysart Office in Order to Maintain Delivery Schedules and to Final Price Contract Overfills and Underfills. Thank You 

 

 

 

   

 

 

Market Snapshot
Quotes retrieved on June 04, 2020, 02:52:50 PM CDT
Iowa Agriculture News

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