Talk of accelerated harvesting depressed crop markets Sunday night. Wire service sources cited forecasts for benign harvest weather for the grain and soy market losses posted in Sunday night trading. However, nearby corn futures are priced just above major supporting averages, so the losses may be limited in the short run. December corn futures sank 4.0 cents to $3.44/bushel early Monday morning, while May sagged 3.5 to $3.665.
The soy complex is also flinching at increased harvest pressure. The dryer weather experienced over the weekend and the prospect of much more of the same during the days ahead reportedly weighed heavily upon the soy complex to start the week. Last Friday’s apparent failure at major technical resistance may also bode ill for this week’s market action. November soybean futures fell 10.75 cents to $9.41/bushel Sunday night, while December soyoil lost 0.14 cents to 31.88 cents/pound, and December soymeal slid $3.9 to $326.6.
Corn and bean losses seemed to undermine the wheat markets as well. Little news concerning wheat emerged over the weekend, which seemingly opened it up to the influence of the corn and soy markets. Traders particularly worry about depressed corn prices undercutting domestic wheat feeding. December CBOT wheat dropped 5.0 cents to $5.11/bushel in predawn Monday trading, while December KC wheat slumped 2.75 cents to $5.99/bushel, and December MWE wheat skidded 2.75 to $5.6775.
Big beef losses seemed to depress cattle futures Friday. The cattle market surged Thursday afternoon as the stock market rebounded from its mid-week lows. However, CME bulls gave back a portion of the move, which probably reflected the recent drop in choice beef cutout and worries about seasonal weakness. December live cattle futures closed down 0.25 cents at 165.05 cents/pound Friday, while April futures dipped 0.40 to 162.05. Meanwhile, November and January feeder cattle futures plummeted the 3.00-cent daily limit to 228.12 and 234.15 cents/pound, respectively.
Hog futures ended last week on a firm note. Although cash hog and pork prices came under increasing pressure last week, nearby futures posted a sizeable comeback from early Friday lows. That probably reflected trader suspicions that CME discounts are too large. December hog futures edged up 0.25 cents to 90.57 cents/pound at their Friday close, while April hogs surged 1.05 to 87.50.
Chinese news seemingly dragged nearby cotton lower Sunday night. A weekend announcement of a sizeable cutback in Chinese cotton buying last month seemed to depress the December cotton futures in overnight action. In contrast, the deferred contracts posted modest gains, which may have reflected renewed industry optimism about the stock market outlook, and by extension, apparel demand. December cotton futures slipped 0.04 cents to 62.96 cents/pound shortly after dawn Monday, while March futures gained 0.15 cents to 61.88.