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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	+0.0050	3.6200	3.6950
Soybeans	+0.0425	9.8300	10.5050
Wheat	+0.0225	4.4900	4.4350
Cattle	-2.50	123.63	117.65
Hogs	-4.70	68.85	74.22
Cotton	-0.62	76.68	75.58
Milk	-0.01	13.60	16.85
Crude Oil	-6.24	59.21	53.00

Corn, wheat and soybeans were all up slightly on the week, with strong corn export demand and concerns about Argentina weather in the face of drought helping to underpin the markets. The corn market also had help from Thursday's monthly Supply and Demand report, which showed a bigger-than-expected increase to projected U.S. corn exports. That USDA report was negative for soybeans, as it raised 2017-18 projected carryout to a burdensome 530 million bushels on a reduced export outlook. Yet the soybean market rallied after the report as crop estimates for Argentina are on the decline. The USDA report was also negative for the wheat market. Worries about trade with China hang over the grains complex amid a trio of troubling stories over the last week. This includes an investigation by China into measures to slow imports of U.S. sorghum, a report of U.S. corn shipments being cancelled due to GMO issues, and also a potential shift in the government's policy on U.S. soybeans. Cotton futures were down on the week in nearby March futures, while deferred December cotton futures were higher. USDA unexpectedly lowered its 2017-18 cotton export projection by 300,000 bales.

This week's moves in ag markets came amid a highly volatile macroeconomic environment, as the stock market gyrated up and down but ultimately was sharply lower. This helped weigh on the livestock complex, as both live cattle and lean hog futures were down on the week. Prices for beef and pork were down throughout the week, adding further pressure on packer margins and raising questions about demand as well as cash market strength. An absence of trade in Plains cash cattle markets weighed on live cattle futures. USDA meanwhile estimates that second-quarter U.S. beef production will be up a whipping 12% from a year ago. Pork packer margins are at their weakest levels in months.

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