Kirsten Rall updates the markets as of 7/6/2020 at 2 p.m.
Grains: Grain futures ended higher on the day. Soybean futures saw healthy gains in the two nearby contracts. Wheat futures ended higher after trading mixed for most of the day Monday.
Futures are trading on good growing conditions within the next several weeks in key crop growing areas.
The USDA is reporting 264,000 metric tons of soybeans that have been sold to China for the 2019/2020 marketing year. Corn to China is reported at 204,000 tons, while 192,800 tons of corn were sold to Mexico.
Arlan Suderman, Chief Commodities Economist for StoneX:
Livestock: Futures end higher Monday. The bullish futures are followed by the long three day holiday weekend. Box beef was lower at midday with Choice down $.38 at $205.06, Select down $2.27 at $196.49.
The uptick in Covid-19 cases is concerning for the livestock market that is in correlation with the economy, is expected to put stress on restaurant activity and overall pork and beef demand.
Here is Arlan’s Livestock commentary:
Kirsten Rall updates the markets as of 7/6/2020 at 11 a.m.
Grains: Futures are mostly higher across the board. These higher futures are trading on weather models for the next two weeks. The Global Weather Systems and the European Weather Models both predict precipitation at 75% for the midwest. Hot temperatures are expected in the upcoming week to progress crop progress.
The USDA is showing large amounts of corn and soybeans for China. Large amounts of corn has also been purchased by Mexico.
Livestock: Livestock futures are higher in trade Monday, following the 3-day holiday weekend. Cutout values for both hogs and cattle were higher at the close Thursday. The downturn in sales that typically follows the 4th of July holiday is expected to be a concern over the next few months.
Outside markets are higher and this is having an impact on Livestock futures. There are concerns with higher COVID cases that the economy may not open to full capacity as soon as expected and restaurants will continue to struggle. The next few weeks with be critical in the livestock industry.
Kirsten Rall updates the markets as of 7/6/2020 at 8 a.m.
Grains: Futures are higher across the board in overnight trade. Higher futures are on weather models the next two weeks, with the Global Weather System and the European Weather Models predicting precipitation at 75% for the midwest over the next two weeks.
North Dakota had 1.5-2 inches of rainfall over the weekend, with scattered showers and thunderstorms expected to continue through the first half of this week.
Livestock: At the close on Thursday, cutouts were higher due to the holiday grilling activity. Futures ended higher on Thursday, trade was light on the day. Suderman says livestock futures are very receptive to the economy and with reports of a positive jobs report on Thursday, hog and cattle futures both saw triple-digit gains.
Hog slaughter is expected at 454,000, Cattle slaughter is expected at 117,000 head.