DTN Midday Livestock Comments

GENERAL COMMENTS:

The U.S. stock market indices are flat to lower with the DOW futures down 15. The interest rate products are higher. The dollar index is 61 lower. Energies are mixed with crude unchanged. Livestock trade is mixed with cattle lower and hogs higher. Precious metals are higher with gold $7.20 higher.

CORN

Corn trade is 2 cents lower at midday which has us near the May lows with no fresh supportive news. Ethanol prices are lower and the market is not seeing a material planting weather issues any longer other than isolated spots which is fairly normal. The weekly crop progress report put planting progress at 71% 1% ahead of average, and 3% behind last year, and emergence at 31%, 10% behind last year, and 5% behind average. There have been some rains in the double crop corn areas of Brazil in recent days. US weather looks to remain wet for much of the western belt which the market sees as mixed with some planting being effected but moisture good for the crop in the ground. The July chart support is the $3.60 3/4 4-month low. Resistance is at the 20-day moving average at $3.69.

SOYBEANS

Soybean trade is 1 to 4 cents higher at midday with trade trying to test nearby resistance. Meal is flat to $1 higher and oil is 5 to 15 points higher. The weekly crop progress showed planting at 32%, 2% behind last year and same as average. The weekly export inspections were softer at 281,465 metric tons yesterday. South American export competition should remain strong. Currency trade having more of an impact on Brazilian farmer decisions though, there is talk of Brazilian farmers holding and storing more beans but with such a big crop it should not affect available supplies near term. July beans held at the 20-day $9.65 1/4 moving average and tested nearly resistance at the 10-day at $9.70. We have consolidated so the market is due for a chart breakout but for today trades are looking for sideways action to continue. The 1-month low at $9.52 and high at $9.89 is the July major support and resistance levels respectively.

WHEAT

Wheat trade is 2 to 6 cents lower at midday with trade trying to find support after the long liquidation on Monday. Weather looks to remain wet for much of the winter wheat belt, potentially enhancing disease concerns, while some of the damaged wheat tries to stand back up. The warmer temps fading by the end of the week should keep maturity closer to normal after the fast start to the year. The weekly crop condition numbers had winter wheat 51% good to excellent down 2% on the week. Crop progress numbers had the winter wheat 63% heading, 3% behind last year but 6% ahead of normal. Spring wheat was listed at 78% planted, 9% behind last year, and 5% ahead of average with 40% emerged, 13% behind last year, and 4% behind normal. On the July KC contract support is at the overnight low of $4.22, which we are challenging at midday, with major support at the $4.11 contract low printed a month ago. The 20-day at 4.37 is chart resistance.

(ES)

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