In the News

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WEEKLY COMMODITY HIGHLIGHTS

Nearby Futures	Weekly Change	Friday's Close	Year Ago
Corn	-0.1075	4.4225	3.5700
Soybeans	+0.0600	9.0275	8.8050
Wheat	-0.1250	5.2600	4.9525
Cattle	-2.05	102.23	106.13
Hogs	-2.72	77.90	75.72
Cotton	-0.19	65.56	84.29
Milk	+0.24	17.09	14.86
Crude Oil	+4.88	57.65	65.54

Grain and soybean futures were mixed during the week, as corn and wheat pulled back after strong gains earlier in the month. While corn prices retreated after making a five-year high on a front-month basis, there's no sign of a top in the market yet. The market is underpinned by the significant acreage losses that are now assured, along with plenty of concern about yields for the crop that has made it into the ground. Interior basis levels for corn remain strong, as end-users try to secure supplies ahead of what is likely to be a short, late crop. Soybeans were firm on the week, as the market is still in the process of losing acres due to the persistently wet pattern across the Midwest. Wheat's strength is derived mainly from corn. Concern about export demand weighs on the grain and oilseed complex as a whole. Corn sales in particular have fallen off sharply. Pessimism about U.S.-China trade relations is hanging over the complex. Cotton futures were mixed, with weakness in nearby July and gains in the December contract. Crude oil surged, driven largely by escalating U.S.-Iran tensions.

In the livestock complex, lean hogs rallied on Monday but then came under pressure from abundant hog supplies and fund liquidation. Various contracts ended the week at multi-month lows. Disappointing Chinese demand was a negative factor, as was declining wholesale pork values, which pushed pork packer margins back into the red. The market continues to be buried by large supplies. Live cattle futures also started the week strong, but retreated late. Beef demand is a concern amid signs of a weakening economy, and Plains cash trade was down from the prior week. Friday afternoon's Cattle on Feed report showed May feedlots placements at 97.2% of a year earlier, slightly higher than expected.

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