Happy Day-after-the-4th of July (what some people would call the 5th of July)! Last week’s USDA ‘Acreage’ report saw an unexpectedly high number of acres that sent the DEC Corn contract down significantly with reverse moves in the cattle contracts. DEC Corn made up a chunk of its losses over the week of July 1 – July 5 ending at $4.422/bu.
Cotton also posted higher-than-expected acres, keeping contracts depressed. This fundamental signal to keep prices low was exacerbated by less-than-positive new crop export numbers, a result of the ongoing trade dispute with China.
The employment report out today showed U.S. employers added jobs in June. The jobless rate last month did rise to 3.7% but this was in part due to the increase of workers entering the labor force. Wages advanced 3.1% from a year earlier, consistent with the prior month’s pace.
Long-term, good employment numbers are good signals for cotton, a crop that is more dependent upon global growth and strong employment due to its use in durables rather than as a food-source.
Next week:
The July WASDE is out this upcoming Thursday. I do not expect a significant amount of movement in many contracts, as the USDA will not have had time to re-survey the ‘Acreage’ numbers. Be on the lookout for August reports to cause more significant change.
Important Dates:
July 8 – Crop Progress, NASS
July 11 – WASDE, OCE
August 2 – Application deadline for 44 Farms International Beef Cattle Academy
August 5 – 7 – Texas A&M Beef Cattle Short Course