Favorable weather conditions continue weighing on corn futures. The weekly Crop Progress report stated current U.S. corn conditions at 76% good-to-excellent, which is the highest for mid-July since 1999. When combined with near-ideal weather forecasts for the critical pollination period, it’s no wonder CBOT futures keep falling. September corn slumped 8.75 cents to $3.7275/bushel late Tuesday morning, while December stumbled 8.5 cents lower to $3.7975.
The soy complex also declined in response to near-perfect conditions. Monday’s Crop Progress report stated current soybean conditions at 72% good-to-excellent, thereby marking a 20-year high for mid-July. Anticipation of extremely favorable weather during late July also seems to be spurring fresh selling. August soybean futures dove 26.25 cents to $11.7075/bushel around midsession Tuesday and November futures sank 11.75 cents to $10.745. August soyoil tumbled 0.36 cents to 36.52 cents/pound, while August soymeal dropped $8.2 to $380.4/ton.
Wheat is following corn and beans lower. Monday’s Crop Progress report also seemed favorable to improved U.S. wheat production, but traders are also reportedly expecting plunging corn prices to undercut wheat feed usage during the coming months. September CBOT wheat slid 6.0 cents to $5.3175/bushel in midday Tuesday action, while September KC wheat lost 9.25 cents to $6.365/bushel, and September MWE wheat moved down 8.5 cents to $6.3075/bushel.
Cattle futures are trying to rally at midsession Tuesday. Bearish summer expectations are weighing on cattle futures at this point, as indicated by discounts built into the various contracts. However, ideas that those pessimistic ideas are overdone seem to be boosting CME values today. August live cattle bounced 0.35 cents to 148.15 cents/pound in late Tuesday morning trading, while December added 0.15 cents to 152.40 cents. Meanwhile, August feeder cattle surged 0.72 cents to 211.40 cents/pound, and October climbed 0.22 to 211.15.
Hog futures are trading mixed to weak this morning. Cash hog prices rose again Monday, thereby seeming to justify the broad rally and today’s early follow-through in the nearby contracts. However, pork cutouts were called mixed to lower yesterday afternoon, thereby seemingly reigniting fears about reduced demand and lower late-year prices. All but the expiring July contract are trading below the CME index. August hog futures edged up 0.35 cents to 130.70 cents/pound as lunchtime loomed Tuesday, but December dipped 0.55 cents to 104.60 cents.