Weather remains threatening next week for the Midwest.

Grain futures are lower on technical considerations, with the wheat market failing to respond to the lack of progress for any export corridor deal that Russia has tried to work with through its Turkey meeting yesterday. Corn and soybeans could not maintain follow-through buying overnight and drifted in price with the wheat market. The looming USDA June supply-demand report on Friday brought in hedge selling after a multi-day rally in row crops.

The WASDA crop report Friday will likely have any new statistical changes other than they will likely cut Indian wheat production and exports. At the same time, US balance sheets are probably left little changed. It’s the upcoming June stocks/seeding report on June 30 that will be a dynamic report. The trade is starting to accept that corn and spring wheat acres could be cut by over 1 Mil acres each.

Paris milling wheat declined $4/MT overnight as light rain fell across 65% of France, but the forecast remains poor across the drought areas of Germany/Italy.

The Central US forecast looks as threatening as yesterday with above too much above normal temperatures and limited rainfall indicated for the next two as a strong high-pressure builds and holds across the Central US early next week. For another 3-4 days, seasonal temperatures will be experienced, but the upcoming Ridge change shows that it has stability in late June, with Central US high temperatures routinely tagging into the 90s.

Cattle futures enjoyed a solid price gain on Friday as cash bids moved higher, with southern deals at $136, which was $1 higher in the north dressed trade at $225, which was up $5 over last week. The choice/select spread widened to $22, with lower carcass weights having reduced the quality of beef available. The choice was $0.32 higher yesterday, while select lost $0.15 with the load count late at 121 loads. Looking back to the five-area average cattle prices, they have held from $136-143 for the first half of the year.

Futures values indicate a relatively quiet summer correction, with a robust late-year rally pricing in. There are concerns that domestic demand in the coming months will weaken with gas prices continuing to surge weekly and other food costs increasing as well. It will take time for the supply-driven bull market to get underway to boost December cattle to new contract highs.