Stewart-Peterson Market Commentary

Closing Commentary - June 30, 2015

Stewart-Peterson Mid-Day Update 6-30-15

CORN: Corn futures jumped 15 cents on lower-than-expected stocks numbers released by USDA at 11:00 CST. USDA pegged corn acreage at 88.9 million acres which was below trade estimates. Corn stocks as of June 1 came in near pre-report estimates at 4.45 billion bushels, up 15% from the year prior. Of the total, 2.28 billion bushels are held on-farm while 2.17 bil bu are in commercial storage. The March to May disappearance is 3.3 bil bu, an increase from last year's 3.16 bb. December futures have put in a nearly 3 month high of 4.17-1/4.

SOYBEANS: Soybean futures rallied 30 cents when USDA release non-bearish numbers in the quarterly stock report. November futures forged a new high for the recent rebound to 10.14-1/4. USDA pegged soybean acreage at 85.14 million acres which is 2% higher than last year and a new record. USDA expects farmers will harvest 84.4 million acres. Acreage is higher or unchanged in 20 of the 31 major producing states with increases of 200,000 acres or more in Illinois, Indiana, Minnesota and Tennessee. Soybean stocks as of June 1 came in at 625 mb, toward the low end of pre-report estimates. Farmers held 246 mb on-farm, while off-farm stocks came in at 379 mil bu. Disappearance from March to May totaled 701 mil bu, up 19% from the year prior.

WHEAT: Wheat futures are higher following the report. Old crop wheat stocks in all positions on June 1 came in at 753 million bushels, up 28% from a year ago and toward the higher end of pre-report estimates. On-farm stocks are estimated at 155 mil bu, while off-farm stocks are at 597 mil bu. March to May disappearance is 388 mil bu, down 17% from a year earlier. USDA said farmers planted wheat on 56.08 million acres in 2015. Winter wheat was planted on 40.6 million acres, with 29.6 mil acres of hard red winter and 7.61 million of soft red winter. Spring wheat was planted on 13.5 ma and durum on 1.95 million. September CBOT wheat is up 6-1/2 cents to 5.90.

CATTLE: Cattle futures are trading mixed, as operators await news of cash markets. June live cattle futures, which expire on Tuesday, recently picked up 0.325 to 150.000. August cattle recently reversed gains from the start of the session, sliding 0.625 cent to 149.250 a pound. Feeder cattle futures for August are down 1.725 cents to 217.350.

HOGS: Hog futures are higher, lifted by short-covering after a closely-watched federal supply report released last week sent prices sharply lower, as traders continue to digest the outlook for available livestock in the months ahead. July hogs recently picked up 142.500 to 75.675. Most-active contract, hogs for August delivery, recently advanced 167.500 cents to 73.450. Traders are scaling back bets on a steeper drop while awaiting fresh signs of demand.

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