The Crop Progress report probably weighed on corn Monday night. The weekly USDA Crop Progress report indicated that the latest corn condition rating tied 2010 for the best mid-June reading on record. Of course, much depends upon weather during the July pollination period, but conditions are obviously very favorable at present. July corn slipped 1.25 cents to $4.3975/bushel early Tuesday morning, while December slid 1.25 cents to $4.4075.
Soybean conditions also look quite good. The Crop Progress report stated mid-June U.S. soybean conditions at a record high for mid-June, which rather obviously bodes well for the fall crop and bearish for new-crop prices. However, diminished short-term conditions apparently caused old-crop prices to lead the way lower. July soybeans slumped 8.5 cents to $14.1325/bushel Monday night, while July soyoil skidded 0.03 cents to 39.47 cents/pound, while July soymeal dipped $1.2 to $461.2/ton.
Wheat markets are mixed this morning. The Crop Progress report indicated good spring wheat conditions, while winter wheat ratings were unchanged at depressed levels. That would seemingly explain the modest rise in CBOT wheat, but causes of concurrent KC weakness and Minneapolis gains weren’t readily apparent. An overnight cut in Australian export estimates seemed supportive. July CBOT wheat futures rose 0.5 cent to $5.815/bushel shortly after dawn Tuesday, while July KCBT wheat sagged 1.0 cent to $7.0725 and July MWE futures gained 3.0 to $6.83.
Surging beef values are supporting cattle futures. The cattle market paused Monday in the wake of last week’s big gains, then bounced overnight in response to big gains in beef cutout values yesterday afternoon. However, traders likely expect seasonal weakness to reassert itself later the week as grocers complete purchases for Independence Day features. That probably limited the CME response. August cattle rallied 0.15 cents to 146.60 cents/pound as Tuesday dawned over Chicago, while December stumbled 0.12 to 151.57. Meanwhile, August feeder cattle tumbled 0.10 cents to 208.60 and October edged up 0.05 to 209.62.
Monday’s cash and pork news looked supportive of hog futures. Yesterday’s late reports indicated considerable cash and wholesale strength, which seemed likely to boost the CME swine market today. That might still happen, but futures actually declined overnight. That probably reflected technical weakness in the wake of Monday’s dive, as well as the large premiums already built into Chicago prices. August hog futures slid 0.12 cents to 128.15 early Tuesday morning, while December dropped 0.37 cents to 95.80.
Cotton futures firmed Monday night. Old crop tightness and technical factors are seemingly providing persistent support for the expiring July future. The Crop Condition report indicated a significant improvement in the growing fiber crop, which might have weighed upon new crop prices. Nevertheless, December inched upward. July cotton gained 0.10 cents to 87.75 cents/pound in early Tuesday trading, while December cotton crept up 0.02 to 77.14.