In the News

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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	+0.0375	3.9450	3.5600
Soybeans	+0.0925	10.7425	9.7500
Wheat	-0.0700	4.6775	4.8100
Cattle	-2.38	121.05	151.97
Hogs	-2.10	79.85	81.38
Cotton	+1.05	61.67	65.77
Milk	+0.09	12.82	16.32
Crude Oil	+1.54	47.75	60.50

Corn futures rallied to their highest level in a month but couldn't take out their April highs, and retreated before ending up slightly on the week. Solid export demand and concerns about Brazil's corn crop underpin the market, but a mostly favorable start to the U.S. growing season hangs over the market. Soybeans were mixed, with gains in nearby July but losses in the November contract. Soybeans are caught between soybean meal, which surged to its highest level since late 2014, and soybean oil, which fell on the week. Rains in Argentina that have slowed the soybean harvest and prompted quality concerns have supported the soy complex. Wheat futures were down on the week on favorable U.S. winter wheat crop conditions, good prospects for European production, and lousy export demand. Cotton rallied amid technical buying and strong weekly export sales. Rice futures ended higher for the seventh week in a row, driven by c oncern about Asian crops and technical strength. Strength in the U.S. dollar amid renewed expectations of a Fed interest rate hike in June was negative for commodities in general.

In the livestock complex, live cattle futures ended lower, with nearby June dropping to a two-week low, amid fund-selling and sharply lower wholesale beef prices. Futures remain at a significant discount to cash trade, which was mostly at $130-$132 last week. Friday afternoon's Cattle on Feed report was negative for the market, as it showed placements jumping 7% in April from a year ago, well above the average analyst estimate of a 0.8% decline. Total inventories were up 1%, also above expectations. Lean hog futures were also lower on the week, pressured by slowing packer demand as operating margins have tightened. Technically, the lean hog futures have turned negative. Seasonally weaker beef and pork demand weighed on the livestock complex.

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