Added Acreage Will Be Seen In Corn Carryout

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Today’s report will show a large corn carryout due to the added acreage from the June 28th report. Given that trade already knows about the acreage increase the total reaction to the carryout increase might be limited. Not many other surprises expected today but it is the USDA so we will review all changes made at 11 AM.

Cattle – BB now lower 3 days in a row bringing in some fundamental concern, NE cash still $1 lower

↔Yesterday’s PM BB was choice -2.40 Select -0.56 packer BE at 198.45, packer cushion $4.42

↓ BB has now been lower 3 days in a row which starts to bring up fundamental concern about a BB pullback as analysts had called for last week

↓ Packer profits around $4 is not horrible but we know $7 is the level to expect a neutral cash trade so the first thought on next week is already for at least $1 lower

↔Futures are still priced $10 under cash so any lower cash moves may now mean only small setbacks in futures as futures have weeks of a cash pullback already priced in

↔A 2 ½ month uptrend line is still holding in August but it crosses fairly close at 180.92, this will likely be the key technical level trade watches, the 100 day MA is at 179.00

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