Corn down 40-cent limit

   Jly -40 633 (633-74); Dec -40 532 (532-73)

Bean Jly -114 1334 (1328-1450); Aug -105 1296; Nov -92 1251 (1240-1341)

  Meal Jly -18 361 (360-80); Dec -15 368

  Oil Jly -550 limit 5657; Dec -550 5233

Wheat Jly -23 640 (637-67); Dec -22 649; Jly22 -23 651

  KC Jly -23 587; MGE -16 744

Oats -8 367

Rice -15 1221

 

LC Jun -220 12010; Oct -340 12657; Dec -327 12987

FC Aug -30 15740; Oct -62 16070; Jan +5 16132

LH Jly -450 limit 11100; Oct -410 8692; Dec -330 7882

Milk Jun +11 1736; Jly -21 1676; Aug -29 1740

CBOT futures closed sharply lower to as much as limit-down in some contracts as the spec funds dumped portions of their long positions. Corn dropped by the new daily limit of 40 cents/bushel; tomorrow the limit is 60 cents (hopefully that’s not needed). For a second day in a row, limit losses in soybean oil futures weighed on soybean futures with around 8 percent losses. Several factors came together today to create the huge losses. Weekly old-crop corn export sales hit a 5-week low. Yesterday’s FED meeting report suggested interest rates could rise in 2022 – this strengthened the US Dollar. The stronger dollar contributed to losses in agricultural futures and others like precious metals and energy. Improving U.S. crop weather also pressured corn/bean prices. NOAA’s extended outlook expects below normal temps and above normal rainfall from June 23-July 1. Another negative factor was talk that China is working to tamp down rising prices there. Also hanging over the corn/bean market is concern that the Biden administration may adopt policies detrimental to ethanol and biodiesel.

Due to today’s volatility and price moves, the CME Group raised corn and soybean futures margins by about 10 percent effective tomorrow.

Live cattle futures closed sharply lower while feeder futures ended more narrowly mixed. After four strong days of higher LC futures, the LC market succumbed to the big downdraft across the commodity market. Feeder cattle were able to offset the LC drop due to the huge losses in corn futures. Boxed beef values have been weakening this week. Choice beef dropped 2.92 to 326.25 and Select fell 2.72 to 287.24. Negotiated cash trade has been limited at $124/cwt live and $195/cwt dressed.

Lean hog futures closed sharply lower to expanded-limit down (July, Aug LH) following yesterday’s $3.00 limit losses. The spec crowd is liquidating a huge long position as they grow concerned about China’s pork demand. This morning’s export sales report was higher than last week, but China didn’t buy anything new.  FOB Plant Pork gained 4.31 to 124.83, but was up 6.68 in the morning report.

 

US$ +.5% 91.90 (92.30-92.00)

Dow -210 33823

SP -2 4222

NAS +122 14161

Tran -319 14820

  VIX -.43 17.72

 

WTI -117 7078

Brent -131 7308

Gas -2 213

NG unch 325

HO -4 207

Eth unch 246

Gold -87 1775

Slvr -196 2586

 

2-yr +.010 0.215%

5-yr +.001 0.883%

10yr -.053 1.516%

30yr -.107 2.102%

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