July corn closed up 19 cents and stretched its premium over the September contract to $1.35 1/4, one day away from delivery and USDA’s Acreage and Grain Stocks reports. December soybean oil closed higher a second day, ending up 1.84 cents with support from a hot and dry forecast for Canada’s canola crop. We saw some profit taking in spring wheat amid the hot and dry weather in the Northern Plains and Canadian Prairies. We also saw reports of possible freeze damage on Brazil’s already drought-ravaged winter corn crop. Widespread talk that corn in Parana and Mato Grosso do Sul may have lost from 2 million to 3 million metric tons of production has Brazil’s own corn futures market gapping higher for the second straight day.
The cattle contracts were able to rally into Tuesday’s afternoon trade as the corn market’s confidence has lessened. The cash cattle market has yet to be tested and it’s looking like packers are going to hold their cards close to their chest this week. It’s most likely that the market doesn’t see any substantial business develop until at least Wednesday. Hogs continue to find support this week after the big correction of the last week or so.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Jesse Allen and Jim McCormick or AgMarket.net AND a weather update with Eric Snodgrass of Nutrien on today’s episode of Market Talk below: