Overnight demand news… South Korea’s Feed Leaders Committee bought 60,000 MT of corn, 60,000 MT of feed wheat and 60,000 MT of soymeal in private deals yesterday. Tanzania will export 700,000 MT of corn to Zimbabwe, whose crops have been wilted by drought and whose people face food shortages.
Poor grocer demand a limiting factor for lean hogs… Lean hog futures faced pressure early yesterday, but the market found support at Tuesday’s lows and eventually turned higher. This was an encouraging, though we fear lows may still not be in place. The late winter/early spring surge in pork prices may have crimped grocer demand before it got off the ground. The pork cutout value dropped $1.48 yesterday on a $15.46 spike lower for bellies. Movement was solid at 356.57 loads.
Some cash cattle action at steady prices… Some light cash cattle sales took place yesterday in Kansas and Texas between $114 and (mostly) $115 and in Nebraska around $116, steady with the week prior. But other locations held out for better prices. Packers have been able to push prices lower in recent weeks, but feedlots may dig in for better prices this week. Boxed beef prices are up several bucks from last week and packers are enjoying strong profit margins.
Robert Mueller said charging Trump was ‘not an option’ and the special counsel signaled Congress has responsibility for holding the president to account… Some say House Speaker Nancy Pelosi (D-Calif.) cannot hold the line on Trump impeachment as Mueller’s statement has put the spotlight squarely on the House speaker. A Washington Post opinion item calls it “an invitation to impeach, in Mueller-speak.” Politico says the whip count in favor of impeachment is 41 House members (42 if you include GOP Rep. Justin Amash of Michigan), representing "fewer than 20% of House Democrats, and less than 10% of the House."
Brazilian ethanol company files for bankruptcy… Atvos, a Brazilian ethanol company, has filed for bankruptcy protection. The unit of the industrial conglomerate Odebrecht did so after its creditor, Lone Star Funds, got a court decision blocking its cash position.
Exchange raises corn margins… CME Group hiked maintenance margins on July corn futures by $120 per contract to $880 per contract, a 15.8% gain. The exchange details that initial margin rates are 110% of these levels. The new rates will take effect after the close of business today.