In the News

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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	+0.0600	3.82	3.6375
Soybeans	+0.2875	10.55	9.8850
Wheat	+0.1175	4.65	4.7725
Cattle	+2.71	123.43	160.80
Hogs	+0.05	76.85	75.33
Cotton	-1.21	60.62	67.32
Milk	-0.14	12.73	16.24
Crude Oil	+1.55	46.21	58.58

Grain and soybean futures were up on the week, driven by a bullish USDA report for soybeans. USDA's first look at the 2016-17 balance sheets projected U.S. soybean carryout at 305 million bushels, a whopping 100 million less than the average analyst estimate. While the stress on South American crops has boosted the outlook for U.S. soy exports, USDA was more aggressive than expected in its estimates, raising old-crop soybean exports by 35 million and forecasting an increase of 145 million bushels for 2016-17, to 1.885 billion. The Tuesday report sent soybean futures soaring to their highest level in 18 months, although futures ended lower each of the final three days of the week. Corn and wheat were pulled higher by soybeans. USDA's report was only mildly bullish for corn, as it lowered old-crop carryout thanks to higher exports but still projected new crop carryout at a burdensome 2.153 billion bushels. USDA's whea t supply and demand estimates reaffirmed that supplies are likely to remain abundant. Cotton futures stumbled for the second week in a row, as USDA lowered 2015-16 exports and projected a larger crop in 2016. Rice futures ended higher for the sixth week in a row.

Live cattle futures surged, driven by a sharp upturn in wholesale beef prices and strong cash trade. With wholesale beef prices surging and packers short-bought on needs, cash trade jumped for the second week in a row, with trade of $133-34 reported in the southern Plains, up $5 to $6 from the prior week and at a significant premium to futures. Packer demand could start to fall off as beef plants finish filling Memorial Day orders. Lean hog futures were mixed on the week, but made new contract highs in some months, as the market is underpinned by strong pork demand that continues to fuel cash hog trade

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