MARKET WRAP
Grains and Cotton
The USDA said that China bought 35,000 tons of U.S. soybean oil in the current season. Also, 120,000 tons of U.S. soybeans were sold to unknown destinations for 2010-2011. November soybeans were up 5.5 cents at $9.305.
December corn settled up 2.25 cents at $3.805 with concerns about unexpected wet weather this spring in the U.S. and Canada. Yesterday’s 6 to 10 day forecast from the National Weather Service is expecting above average temperatures for most of the U.S. to the east of the Rocky Mountains and above average precipitation in the northern states.
According to Bloomberg news, China may need to raise its import quota for cotton this year. Also, Weather.com is predicting highs in the upper-90′s for Lubbock, Texas over the next ten days with virtually no chances for rain. Will the forecast hold? December cotton closed down .47 at 78.95.
Livestock – Cattle on feed up slightly
After the close, the USDA said that there were 10.494 million head of cattle on feed as of June 1st, up .8% from a year ago, as expected. Placements in May were up 23.4% from a year ago and marketings were down 4.3%. August cattle ended down .42 at 88.20.
In today’s Livestock Outlook, the USDA said that “although hog prices have probably peaked, they are expected to continue much above last yearÕs levels and should exceed producer break-even levels for 2010 and into 2011.” August hogs were up .50 at 82.65.
The USDA also said that “beef exports through the first 4 months of 2010 were 26 percent above year-earlier levels, with exports forecast to increase 10 percent this year.” They also said that exports “may not begin to slow until late in this year. . .”
After the close, the USDA estimated this week’s beef production at 503.6 million pounds, down 2.9% from a year ago. Pork production was estimated at 409.9 million pounds, down 2.0% from a year ago.
Coffee
September coffee closed up 4.30 cents at $1.6210, the highest close in 21 months, ahead of this afternoon’s semi-annual USDA estimates.
Orange juice
According to Agrimoney.com, Europe’s orange imports will be up 11% this year, due to Spain’s cold winter (see article). July orange juice ended up .0025 at $1.4250.
Metals
August gold closed up $9.60 at a new record high of $1,258.30, supported by low interest rates and a general distrust of currency values, especially in Europe. July silver finished up 40.8 cents at $19.184, the highest close in nearly five weeks.
Currencies
Statistics Canada said that its composite index of leading indicators was up .9% in May, a little better than expected and the 12th consecutive increase. The September Canadian dollar finished up .58 at 97.78, the highest close in five weeks.
The U.K. posted a budget deficit of 16 billion pounds in May, down from 17.4 billion pounds last year and less than expected. The September British pound ended down .0015 at $1.4796.
Reuters reported that the European Union will perform a stress test on its 25 largest banks and make the results public in an effort to ease worries about Europe’s debt. Also, leaders are said to be discussing ways to enforce stricter debt limits on member nations. The September euro ended down .0016 at $1.2371.
Estonia announced that it will drop its currency on January 1, 2011 and become the 28th member of the European Union.
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