In the News

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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	+0.0775	3.8550	3.5150
Soybeans	+0.2200	9.1675	9.9200
Wheat	+0.1550	5.3125	4.2150
Cattle	+1.03	121.53	118.675
Hogs	+0.33	67.88	68.48
Cotton	+1.32	80.23	74.23
Milk	-0.22	13.76	15.51
Crude Oil	+1.54	52.47	56.69

There were widespread gains across ag commodities during the week, with help from the prior weekend's U.S.-China meeting on trade and solid export demand. The U.S. and China agreed to a "ceasefire" in their trade war, with no new tariffs for a period of 90 days. While this doesn't undo tariffs already in place, it was seen as a step in the right direction and propelled corn, wheat, soybeans and cotton to start the week. Traders spent much of the rest of the week trying to read between the lines on public statements from both sides. A key unanswered question is when or whether China will start buying "substantial" amounts of U.S. ag products, which, according to the U.S., China has agreed to do. Meanwhile corn export demand has picked back up recently, and soybean prices have remained firm despite negative fundamental news. Continued favorable conditions in South America is a negative factor for corn and soybeans. Cotton futures were lifted higher by crude oil, which rallied on an OPEC agreement to curb output.

In the livestock complex, lean hog futures trade remained very choppy amid uncertainty about U.S.-China trade relations and mixed cash hog fundamentals. The trade cease-fire provided a strong boost to futures to start the week, but unlike in the grains complex, the market quickly pulled back. Pork packers have strong margins but are having little trouble meeting needs, which is keeping cash hog prices soft. African swine fever in China remains a supportive factor, as U.S. exports to China have actually picked up recently despite the trade war. Live cattle futures ended moderately higher, supported by stronger cash cattle prices the prior week and expectations for continued gains. The upside was limited by sharp losses in the stock market. Feeder cattle futures remained soft, pressured in part by strength in the corn market.

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