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Corn futures are trading 1 to 2 cents lower this morning. They closed the Turnaround Tuesday session 9 to 10 1/2 cents higher, taking back most of Monday’s losses. Yesterday morning’s USDA S&D report showed a reduction to both old and new crop US stocks. The big old crop adjustment came via exports, which were increased 75 mbu to 2.3 bbu, now above the previous year. New crop feed and residual was trimmed by 25 mbu, while corn used for ethanol was upped 50 mbu. The USDA also increased the 18/19 average farm price range by 10 cents to $3.40-4.40, with the mid-point now at $3.90. Most of the reduction to 18/19 world stocks was from the US, with Brazil and the EU adding to the cut.

Soybean futures are currently 8 to 9 cents lower after seeing fractional to 4 cent gains in most contracts on Tuesday. Nearby soybean meal was up $2.30/ton, with soy oil down a sharp 53 points. WASDE showed old crop US ending soybean stocks at 505 mbu, down 25 mbu from May via an increase in the crush estimate. New crop carryout was cut mainly on smaller old crop stocks and a 5 mbu bump in crush. Estimates for old crop world ending stocks were slightly higher than last month at 92.49 MMT, with new crop also higher at 87.02 MMT. The increase to new crop world stocks came mainly from a jump in projected Brazil stocks.

Wheat futures are mostly 6 to 8 cents lower this morning, with MPLS spring wheat down 3 cents. They posted sharp 18 to 20 cent gains in the winter wheat contracts on Tuesday, helped by strength in corn. MPLS was up just 2 to 4 cents. The addition to old crop US stocks on Tuesday was from a 10 mbu reduction in exports. New crop exports however, were increased by 25 mbu. The 18/19 average farm price was raised 10 cents on each side to $4.60-5.60. The increase to the old crop world stocks was mostly from the previous year’s carryover being adjusted. The USDA cut estimated Russian new crop production by 3.5 to 68.5 MMT, which trimmed exports by 2.5 to 39.5 MMT. Japan’s MOA is seeking 131,070 MT of wheat, with 79,630 MT sought from the US in the weekly tender. Egypt’s GASC purchased 420,000 MT of wheat in their tender on Tuesday, with 300,000 MT from Russia and 120,000 MT from Romania.

Live cattle futures ended Tuesday with most contracts steady to 47.5 cents higher, as nearby June was down 12.5 cents. Feeder cattle futures were down 15 to 82.5 cents on Tuesday. The CME feeder cattle index was up 34 cents from the previous day to $140.95. Wholesale boxed beef values were mixed on Tuesday afternoon. Choice boxes were down 21 cents to $224.92, with Select boxes 59 cents higher to $203.39. USDA FI cattle slaughter was estimated at 238,000 head through Tuesday. That was 1,000 head above last week and 3,000 larger than the same week last year. USDA’s quarterly meat production table shows total 2018 beef production down 90 million pounds from the May estimate to 27.125 billion pounds.

Lean hog futures were steady to $2.05 higher yesterday. The CME Lean Hog Index was up $1.22 to $75.79 on June 8 as seasonal strength continues. The USDA pork carcass cutout value was at $810.30 on Tuesday afternoon, up 86 cents. The loin was the only primal cut reported lower. The national base carcass price averaged $78.68, up 78 cents from the previous day. The USDA estimated hog slaughter at 898,000 head through Tuesday. That is 5,000 head larger than the previous Monday and 54,000 above the same week last year. The USDA pork production estimate were reduced 55 million pounds for 2018 to 27.715 billion pounds.

Cotton futures are 92 to 127 points lower this morning, excluding the October contract. The FOMC is expected to raise their short term interest rate target again this afternoon, with an uncertain impact on equity and currency markets. Cotton futures were 46 to 122 points higher in the nearby contracts on Tuesday. The USDA World supply and demand report showed a 500,000 bale hike in projected exports and a corresponding drop in ending stocks, now seen as 4.7 million bales. World carryout for old crop was UNCH at 88.21 million bales, with new crop down 0.73 to 83.02 million bales. Chinese production was down 500,000 bales to 26.5 million bales, with Australian production down slightly to 3.8 million bales. The Cotlook A index was UNCH from the previous day at 101.35 cents/lb on June 11.

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