William Moore's market views are centered around his many relationships with Agricultural producers. His weekly newsletter, AGMASTER, provides a blend of fundamental & technical information used to make prudent hedging decisions. Contact Mr. Moore at (312) 264-4337
Beans are 86% in with a good-to-excellent rating of 72% – and with no “ridging issues” on the weather horizon! This coupled with tepid export inspections on Mon 213 (300-600) MT forced a continuation of the 20 cent correction! In addition, the Macros aren’t really helping today with the DJI down 200, the crude oil down .50 & the US Dollar steady! Finally, on Thursday 6-11-20, the USDA is issuing their June WADSE report – which is expected to increase already large US & Global stocks! But the underlying GOOD NEWS is the huge bullish economic surprise last Friday with new jobs at +2.5 million (exp – 8-9 million reduction) & Unemployment at 13.5% (exp – 20%)
US Corn farmers are nearly done with 97% planted – with a good-to-excellent rating of 75%! Partially offsetting this bearish influence were solid export inspections yesterday at 1.100 (800-1.250) MMT! Today, planting pressure has the mkt on its heels after Mon scoring its highest close since April 13 . Fund traders are still short 282,000 contracts! Overall, corn’s rally amidst bearish weather forecasts has been impressive!
Like corn & beans, Spring Wheat is nearly in at 97% planted with good/excellent at 82%! And Winter Wheat is 7% harvested with good/excellent at 51%! These are good numbers for producers but bad for prices – as the winter wheat harvest is beginning to pressure July Wht! This coupled with anticipated large US & Global stocks coming on the USDA WADSE REPORT this Thursday has forced a continuation of a wheat’s 25 cent pull-back off last week’s highs!
Despite lower trending beef & cash prices, Aug Cat has maintained a tight trading range (96-102) after an impressive $20 rally in the Spring! The main reasons for the mkt’s ability to hold its spring rally are its still massive discount to cash & the increased demand due to the gradual re-opening of restaurants around the nation!
July Hogs have not enjoyed the same “prosperity” as Aug Cat – slumping some $14 since early May! While China’s general imports of meats have been 75% over 2019, the contract has suffered at the expense of increased weekly slaughter – now over last year- as the shuttered plants have slowly re-opened! But the MAJOR light at the end of tunnel would be the gradual re-opening of the economy -promising much better pork demand!
Bill MooreQuestions? Ask Bill Moore today at 312-264-4337