In the News

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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	-0.0400	3.5725	3.6275
Soybeans	-0.1100	8.9450	9.0400
Wheat	-0.0825	4.9125	4.6125
Cattle	+1.13	105.90	118.625
Hogs	-1.90	79.83	85.03
Cotton	-5.29	85.43	71.14
Milk	-0.73	14.70	16.35
Crude Oil	+4.36	69.21	42.74

Concerns about U.S-China trade relations and benign Midwest weather once again weighed on the grain and oilseed complex. Soybeans were under the most pressure, tumbling early in the week as the White House signaled its intent to pursue more tariffs against China. China does not appear to be backing down, and both commodity traders and investors are bracing for a trade war. Soybeans and cotton are among the ag products with the most to lose, and both were down sharply early in the week. Corn ended the week modestly lower. Temperatures were milder than anticipated during the week in the Midwest, and with regular rains across the Corn Belt including the key producer Iowa, concern about drought stress has faded quickly, and some analysts are now talking about a national average corn yield of 180 bushels/acre or higher. Wheat futures were down on harvest pressure and strong spring wheat crop conditions. The cotton market was pressured by ample rains in West Texas in addition to the concerns about China. Crude oil futures surged, propelled by OPEC's agreement to effectively raise production by about 600,000 barrels per day, a smaller increase than expected.

Those China trade concerns also weighed on the hogs complex, as pork exports to China could grind to a halt due to retaliatory tariffs. Lean hog futures fell on that trade outlook as well as expectations of falling cash hog prices as supplies build. Pork packer margins remained in the red throughout the week. Live cattle futures gained amid robust packer margins that underpinned demand expectations. Traders were also positioning ahead of the Friday Cattle on Feed report. That report held bearish news for the cattle market as May feedlot placements and the June 1 feedlot inventory were both larger than expected. USDA pegged May placements at 100.2% of a year earlier, compared to the average analyst estimate of 95.6%.

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