Corn futures posted a solid close on Friday, despite the higher than expected acreage figure. We continued to trade higher in the overnight session. Weather was getting the attention of traders and that helped to support the market. Crop condition ratings will be updated on Wednesday morning. Expectations are for steady to lower conditions this week and then no better than steady for the following week. We could see corn test the June in the near term unless we get a change in forecast in the near term.
Wheat futures continued to rally higher thanks to the weather conditions in the Spring Wheat Belt. Expectations for a lower crop condition on Wednesday are also helping to support. Gains in the KC Wheat contracts continue to lag on Minneapolis, although we have rallied tremendously over the last 10 sessions or so. Be very careful trying to pick tops. The situation to the north doesn’t seem to be getting better for the near term. Hedgers should look at this as an opportunity to hedge 2018 if possible.
Soybeans are trading higher supported in part by the lower than expected acreage data from Friday’s report as well as less than ideal weather forecasts for some growing regions. We have reached the highest level since May 10th after moving through multiple resistance levels. It will most likely take quite a yield reduction for this year’s crop to really make an impact on the stocks level.
Cotton futures closed sharply higher on the day in Friday’s session. The data from USDA was bullish to the market while export sales last week were also reported strong. The US cotton acreage was pegged at 12.055 million acres against trade expectations of 12.278 million acres. The March 31st estimate was for 12.23 million acres with last year’s number at 10.07 m8illion acres. Fundamental news is positive for the market and a rally in the grain markets will help to support. December support comes in at 68.13 with resistance at 70.93.
Live Cattle futures ended Friday’s session higher. Boxed beef prices were lower in the Friday afternoon report. The weekly cattle slaughter came in at 638,000 head, 6,000 above last week and 33,000 bigger than last year. Cash sales were mostly at 119-120.
Feeder Cattle also traded higher with most gains realized in the deferred contracts. The CME FC Index was last reported at 149.23 as of 6/29/17.
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