AgMaster Report Week Ending 06/05/2020

SOYBEANS –Amidst all the saber-rattling in the past 2 months including the COVID-19 blame-game & the Hong Kong unrest, the Phase One Deal remains intact. China is buying beans & July Beans are currently at a 3 wk high even with planting pressure from a nicely developing crop. Adding support are the macro mkts – the DJI, offsurprisingly good economic #’s is up over 900 points – crude oil is up $2.00 & the US Dollar is some 800 points off its March Highs. (SOYB)

 CORN –  On the heals of the bean rally, July Corn has traded to the top of its 6-week range (310-330)! Corn is dealing with formidable headwinds including a new crop almost completely planted & looking good and massive stocks – however, both of these are getting dialed in! Currency inversion has helped exports with a lower dollar & higher Real! Finally stronger crude oil has helped ethanol demand. (CORN)

WHEAT – With rising Russian Wheat values and dryness in the Black Sea Region & also the US Central Plains, July Wheat has maintained a mild uptrend - also Egypt bought Ukrainian Wheat – a good export sign! (WEAT)

CATTLE – After a $20 rally since Mid-April (81-102), Aug Cattle has settled into a congestion area (96-102). The closing of packing plants caused a spike in prices & their opening capped the rally – the re-opening of the economy will generally help meat demand. (COW)

HOGS – July Hogs have lost $12 (66-54) since early May – mostly due to plants re-opening (more supply) & geopolitical issues with US/China – reducing exports! However, the re-opening of the economy promises increased Pork demand soon!