Comments: Bulls remain in control of the grain and soybean markets despite some negative technical signals last week. Corn and soybean futures reversed sharply lower on Wednesday even though USDA made sharp cuts in its U.S. corn and soybean production forecasts, as significant cuts in projected usage spurred demand worries. However, the markets failed to show follow-through to the reversals as limited rainfall across most of the U.S. Midwest, kept crops under severe stress despite a cool-down in temperatures. With temperatures warming again and forecasts dry through late July, it is unclear when and where the weather rally will end. Wheat futures have remained primarily a follower of corn, but have also found support from concerns about reduced production in the Black Sea region and ideas severe drought conditions in the top U.S. winter wheat state of Kansas may limit seedings there this fall. Livestock futures had a mixed week with live cattle futures falling under pressure from slumping cash fundamentals and technical weakness. Nearby lean hog futures were supported by their discount to cash, buy most hog contracts fell amid deteriorating cash prices. Cotton futures found support from grain prices and easing concerns about China's economy.
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