Top Farmer Midday Update 6-19-18

CORN: Corn futures are lower on broad-based selling seen across a plethora of commodity markets after the latest round of attack/counter-attack rhetoric out of the Trump administration and China; and increased uncertainty around the future of NAFTA. Jul and Dec corn tumbled double-digits before uncovering some buying interest, or at least profit-taking support at their new lows at 3.398-3/4 and 3.60, respectively. Jul was recently down 4-1/4 cents 3.51-3/4. Dec is down 4-1/4 cents to 3.73. It’s clear the funds were active sellers again after building on their now new net short position, as historically high crop ratings and conducive weather induce selling confidence. We’re also hearing trade estimates creep upwards for USDA corn acreage at the end of the month. Outside markets, meanwhile, are adding pressure with crude down more than a dollar amid new highs in the greenback.

SOYBEANS: Soybean futures traded 20 cents lower overnight and imploded further throughout the first hour of trading today, accelerating the bearish trend of the past two weeks, but like corn, are well off their new lows. Jul beans have a 64-1/4 cent trading range working for the day between a high of 9.05-3/4 and a brief multi-year low of 8.41-1/4. The contract is down 26-1/4 cents to 8.92. Nov beans are down 27-1/4 cents to 9.04-1/4 with a new low etched at 8.64-1/2. Brewing global trade wars have beans in the cross hairs of targeted tariffs should threats turn to actions by the time the July 6 trade deadline approaches. The market reaction is negative and has sent prices spiraling lower in search of a bottom.

WHEAT: Wheat futures are lower weighed by broad-market selling, and arguably, a higher dollar affecting an already slow export pace. Seasonal harvest pressure can also be cited. Sep CBOT wheat is down 12 cents to 4.78 and looks to mark a fifth consecutive lower close. Sep KC wheat is down 17-1/2 cents to 4.82. Sep MPLS wheat is down 9 to 5.63.

CATTLE: Cattle futures are now higher after an early bout of outside market pressure stemming from negative trade rhetoric. Beef isn’t a huge import for China, so ideas of steady to higher cash trade this week sparked a turn-around from early lower trade. Jun live cattle are now up 0.425 to 108.725. Aug is up 0.825 to 106.00; and Aug feeders are up 0.650 to 149.625.

HOGS: Hog futures are sharply lower on negative trade talks. Jul hogs are down 1.925 to 81.800. Aug is down 1.925 to 77.500. The Oct contract is down 2.000 to 62.925.

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