In the News

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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	+0.3150	3.8325	3.9525
Soybeans	+0.1250	8.2175	9.9500
Wheat	+0.4025	4.6500	5.065
Cattle	+0.02	108.93	99.10
Hogs	+2.25	93.00	78.20
Cotton	-2.46	65.99	85.03
Milk	-0.14	16.45	15.77
Crude Oil	+1.09	62.89	65.63

It was quite the turnaround week in the grain and oilseeds complex, as futures tumbled to major lows to start the week, before rebounding strongly. The early, sharp selloff was due to the breakdown in U.S.-China trade talks, and China's declaration that it would issue retaliatory tariffs in response to U.S. action. The U.S. alleges that China reneged on some key issues shortly before what were supposed to be "final round" negotiations earlier this month, and as of now there is no end in sight to the trade war. Meanwhile for parts of the central and western Corn Belt there seems to be no end in sight to excessive rains, and that helped propel the markets as the week progressed. Corn planting is far behind its average pace, and as we get into late May, acreage expectations for corn are starting to decline. Corn and soybeans posted bullish weekly reversals on the week. Wheat futures are also getting a lift from the rains, which are fueling concerns for crop quality both for soft red and hard red winter wheat, as well as delaying spring wheat planting. Cotton futures bounced off their lows but were still down on the week, pressured by the lack of a China deal and ample soil moisture in West Texas.

In the livestock complex, lean hog futures remained very choppy but were ultimately higher, as the market was underpinned by firm cash hog prices. Some of the choppiness was due to the U.S.-China trade situation. Hopes of a deal in the near-term have faded, and China actually cancelled some pork export sales in the weekly sales report, but at the same time the African swine fever crisis in China is widely expected to result in a boost in U.S. pork exports. Live cattle futures were firm, underpinned by futures' discount to cash and optimism about improved beef demand as U.S. temperatures rise.

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