Mixed Cattle News Herd

Live cattle futures faced downward pressure this week. A trend toward market liquidation seems to be continuing with active trading contracts trending lower toward August. Following the July holiday, demand looks to drop. However, fundamental supply constraints remain with the US beef cow supply at its lowest since 1951, favoring producers.

Relaxed Tensions Ease Oil Flow

By Friday afternoon, oil prices fell by more than 3% as Middle East supply disruptions through the Strait of Hormuz eased. Cooling geopolitical tension and ample global supplies eased fears concerning embargoes and restricted maritime traffic. Crude was in the $71 range while Brent was below $76.

Wheat Sails over Seven Dollars per Bushel

USDA confirming the smallest US wheat crop in five decades helped wheat rise more than all other agricultural markets this week.

An unconfirmed story that Ukraine bombed a port which exports Russian wheat may have fueled that fire as we are reminded these two countries export the majority of wheat to all of Europe. China’s buying of beans and fears that hot dry weather could threaten corn during its approaching critical pollination period lifted those markets as well.

Decision Dear to Farmers

In a major victory for farmers, The Federal Trade Commission together with five states won a settlement in an antitrust lawsuit against John Deere and Company. The decision ensures that farmers will have the right to repair their own Deere tractors and equipment. Prior to the decision, John Deere retained exclusive rights to repair resources and software functions which were provided only to Deere dealerships.

CME midday prices – August Soybeans, $11.92; September Corn, $4.39; September Wheat, $6.41. Livestock per 100 pounds: August Cattle, $253.40; August Hogs, $98.77. Metals per troy ounce: August Gold, $4,115; September Silver, $60.15, September Copper per pound: $6.28. August Crude oil per barrel: (WTI) $71.20. September S&P futures traded at 7612.

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Walt Breitinger is a commodity futures broker in Indiana. He can be reached at 800-411-FUTURES (3888) or www.indianafutures.com.

Pinion Futures, LLC, a CFTC registered Introducing Broker and NFA Member (NFA #0284447,) is a fully owned subsidiary of Pinion Risk Management LLC. Information contained herein is believed to be reliable but cannot be guaranteed as to its accuracy or completeness. Futures and options trading involve substantial risk of loss and is not suitable for all investors.