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Prices have pushed another 1 to 2 cents higher this morning. On Wednesday, corn futures advanced another 8 to 10 cents per bushel. July futures were strong on the day with a 2.88% gain to $3.48 1/4. The shorts were getting more nervous, with preliminary open interest shrinking 27,586 contracts on the dime rally and prices at a three month high. USDA’s monthly Grain Crushings report showed 299.93 mbu of corn was ground for ethanol in May. DDGS production in May was back up by 219k tons mo/mo to 1.234 million tons. EIA data from the week ending June 26 showed ethanol plants produced 900k barrels of ethanol per day on average. Average daily production increased by 7,000 bpd wk/wk. Using a conversion rate of 2.9 bu/gal, EIA data suggests 4.052 bbu of corn has been used for ethanol MY to date. Ethanol stocks were reduced 870k barrels on the week to 20.164m bbls. That is the smallest stockpile since January 2017! Traders anticipate old crop corn export bookings between 450,000 and 700,000 MT. New crop sales are estimated to be less than 200k MT.

--- provided by Brugler Marketing & Management



The overnight soybean trading has futures starting the last trade day of the week 3 to 4 cents higher. Soybean futures ended the Wednesday session with gains of as much as 18 3/4 cents. Jan beans were up 2.12% on the day, but the other front months closed 9 1/2 to 17 1/4 cents higher. Preliminary open interest showed net new buying, rising 17,284 contracts. Soymeal futures closed with a $6.40/ton gain in July. July bean oil was up by 23 points at the close. USDA released May bean crush in their Fats and Oils report this afternoon at 179.533 mbu. The trade was looking for 180.7 mbu. That was down 3.84 mbu from April, even with an extra day, but was still a record for the month. Bean oil stocks on hand at the end of the month were 2.447b lbs. That was down 155m lbs from April, but still 428m lbs larger yr/yr. Traders are looking for old crop bean export sales to run 300k to 800k MT in the weekly USDA report. New crop sales are also estimated to range 300 to 800k MT. Soymeal export sales are expected between 75,000 and 250k MT, with up to 50k MT of 2020/21 bookings. Traders estimate bean oil sales between 5,000 and 25,000 MT.

--- provided by Brugler Marketing & Management



Wheat trading overnight has futures fractionally mixed in all three markets. The US markets are closed tomorrow for the Independence Day holiday. Yesterday’s session ended with additional gains for winter wheats and a pullback in HRS. SRW futures closed the day with 6 to 8 3/4 cent gains. KC wheat futures ended 2 1/2 to 7 cents higher. Strength in corn helped the winter wheats. MPLS spring wheat closed the day down by 2 to 3 1/2 cents. The 7-day QPF shows at least 2-3 inches of rain forecast over the next week for most of ND as well as parts of northern SD and western MN. Estimates ahead of the weekly Export Sales report have wheat ranging 250,000 to 600k MT. Thailand is seeking 236,800 MT of optional origin wheat in an international tender.

--- provided by Brugler Marketing & Management



Front month futures worked their way higher on Wednesday with gains of $0.85 to $1.77. Feeder cattle futures closed the day higher, after trading in the red early in the session. The front months ended with gains of 22 to 95 cents. The June 30 Feeder Cattle index was down another 29 cents to $129.13. Outside of the FCE, USDA reported moderate Wednesday cash activity mostly at $95. On Wednesday, live cash sales went $95-96 in all feeding regions, and dressed sales were $154 to $155. Wholesale boxed beef prices started July with more weakness. Choice boxes were down by $1.59 and select boxes were $1.47 lower, narrowing the Chc/Sel spread to $6.95. The WTD estimate for FI cattle slaughter through Wednesday is 363,000 head. That is just 1,000 behind the same week last year. The weekly USDA Export Sales report will be released at 7:30 AM CDT.

--- provided by Brugler Marketing & Management




The lean hog market traded lower on Wednesday. October hogs were down the most on the day with a triple digit drop. August lean hog contracts were the outlier, closing up by a nickel. The CME Lean Hog index for June 29 was just a penny stronger at $45.24. The National Average Base Hog price was $28.66 yesterday, up by another 20 cents. USDA’s National Pork Carcass Cutout Value was 50 cents stronger on Wednesday. USDA estimated WTD hog slaughter at 1.406 million head through Wednesday. That is down by 8,000 head vs. the same point in 2019.

--- provided by Brugler Marketing & Management



Cotton is anywhere from 1 lower to 9 higher this morning, with December pausing to catch its breath. The Wednesday session featured more triple digits gains, with Dec and Mar ’21 futures each up more than 3% on the day. Cotton consumption data from May was withheld in the USDA monthly report due to confidentiality protections. Cotton stocks as of the last Saturday of May were 1,662 RBs. USDA’s attaché reported Mexican new crop cotton planted area was down by 34% from 2019/20. The larger than expected cut came via a perfect storm of market pressure, including but not limited to: reduced demand from COVID, lack of GM seeds, lack of pesticides, and dry harsh weather. Mexico planted 147,965 HA (366k acres) with a forecasted production of just 1.06m bales, the lowest since 16/17. Another 1,367 bales were sold on The Seam on Tuesday. Tuesday went for an average gross price of 53.18 cents/lb. The June 30 Cotlook A index was firm at 67.95 c/lb. The AWP for cotton is 49.60 cents/lb, with an LDP of 2.4 cents. Both will be updated after tomorrow’s close.

--- provided by Brugler Marketing & Management



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