DTN's Quick Takes

Todd Hultman
DTN Analyst
and
Rick Kment
DTN Analyst

Grains

OMAHA (DTN) -- As we near the close, July corn is down 5 1/2 cents, July soybeans are down 17 3/4 cents and July K.C. wheat is down 9 cents. All three quotes are near their lows for the day on lighter volume, which suggests buyers have been difficult to find ahead of the weekend. Rain in south-central Brazil is adding to pressure on corn prices, while U.S. soybeans remain short on demand. The seven-day forecast is expected to bring rain across the Midwest, even to some areas that don't need it.

Posted 11:48 -- July corn is down 4 cents, July soybeans are down 16 3/4 cents and July K.C. wheat is down 9 cents. K.C. wheat is threatening a sixth consecutive lower close since posting a nine-month high on May 3 as concerns about drought appear to be giving way to larger concerns about what world production might be in 2018. July soybeans remain under pressure and could be headed to their lowest close in three months with concerns about where demand is going to come from the next four months. Commodities outside of ag are mixed with June crude oil down 34 cents.

Posted 09:30 -- July corn is down 5 1/2 cents, July soybeans are down 16 cents and July K.C. wheat is down 7 1/2 cents. July soybeans and meal are both trading at new lows in May with July meal down $7.30, pressured by slow export demand for U.S. soybeans and Thursday's reported new marketing year low of US soybean meal export sales. Rain appears to be falling in south-central Brazil for the first time in several weeks, putting fresh pressure on corn prices and contributing to a futures board that is solid red for ag contracts.

Posted 08:38 -- After the 8:30 a.m. CDT open, July corn is down 4 cents, July soybeans are down 12 1/2 cents, and July K.C. wheat is down 6 cents. In spite of USDA's rosy new-crop estimates for corn and soybeans on Thursday, grain prices do not appear impressed and are starting the day lower. Friday's satellite map shows a likelihood of rain on corn in Parana, Brazil while Mato Gross stays mostly dry. July soybeans are back near Monday's low with July soybean meal down $5.40.

Livestock

Posted 11:53 -- Little activity has been seen during the second half of the trading session in all livestock markets. Light trade volume is keeping most traders from reentering the market until next week. June lean hog futures continue to lead the entire complex lower with a $2.25 per cwt loss while nearby feeder cattle futures are $1-to-$1.20 per cwt lower at midday. Although some market adjustments may develop through the end of the session, the weaker tone is likely to hold until early next week.

Posted 11:15 -- Triple-digit losses have moved through most livestock trade with most contracts holding losses of $1-to-$1.50 per cwt midmorning. The firm market support that developed earlier in the week has created additional market pressure as traders look for positioning opportunities. June live cattle futures are holding losses of $1.17 per cwt, while May feeder cattle is currently $1.10 per cwt lower. The most aggressive pressure is in the lean hog futures contracts with a $2 per cwt loss during morning trade.

Posted 09:12 -- Firm pressure is seen in nearby lean hog futures trade with traders holding losses of $1-to-$1.60 per cwt lower during the first hour of market activity. The pullback from strong gains seen over the last week is focused more on position squaring and profit taking at the end of the week rather than any change in market conditions or trader mentality. June futures are holding losses of $1.45 per cwt, which could limit morning buyer support in all markets. Cattle trade has steadily eroded through the morning. The initial light pressure seen in live cattle and feeder cattle markets has gained momentum with June live cattle holding 80-cent losses, while spot May feeder cattle trade is $1.15 per cwt lower.

(BE)

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