Ag markets generally stalled after Monday's big moves
The crop markets stalled after spiking upward Monday. Forecasts for greatly elevated temperatures and persistent dryness over the Corn Belt sent corn, soybean and wheat prices sharply higher Monday. However, after having rallied substantially over the past week, traders now wonder if they have fully anticipated the price impact of the changed weather. September corn dipped 0.75 cents to $5.15/bushel early Tuesday morning, while December sagged 2.25 cents to $4.9825.
Soybeans led the way higher again Monday, but also slipped overnight. That was no surprise, since this time of pod-filling is generally much more critical to the size of the bean crop than for its counterparts. September soybeans slid 5.25 cents to $14.225/bushel around dawn Tuesday, while November beans skidded 6.5 to $13.83. September soyoil dropped 0.15 cents to 44.29 cents/pound, but September soymeal advanced $1.7 to $460.3/ton.
Wheat futures were mixed early Tuesday morning. The winter wheat markets moved generally lower in response to the losses suffered by corn and soybeans, but there were also signs of firmness. Actually, the overnight gains in Minneapolis futures weren’t that surprising, since heat and dryness at this time will probably facilitate the spring wheat harvest. September CBOT wheat slipped 2.0 cents to $6.5275/bushel in early Tuesday trading, but September KCBT wheat edged 0.5 cent higher to $7.0875, and September MGE futures added 2.75 cents to $7.32.
Cattle futures may be anticipating late-month weakness. The cattle market has performed rather well lately, but traders are probably expecting some slippage this week, since grocers have probably met their needs for Labor Day at this point. That would explain the slide in choice cutout Monday afternoon, as well as the Chicago losses suffered overnight. October cattle futures declined 0.17 cents to 126.97 cents/pound early Tuesday morning, and December edged 0.07 cents lower to 130.10. September feeder cattle futures rose 0.22 cents to 154.35 cents/pound in response to the grain slippage, while November added 0.05 to 156.80.
Hog futures sustained a modest advance overnight. Although seasonal factors suggest substantial weakness in hog and pork prices during the coming days and weeks, cash prices were relatively firm west of the Mississippi River Monday. That probably explains the firmness exhibited by CME futures overnight. October hog futures gained 0.10 cents to 86.12 cents/pound in early Tuesday action, while December lifted 0.12 cents to 83.20.
The cotton market were mixed to lower Monday night. The dip suffered by corn and soybeans probably played a role in the overnight decline in cotton futures. However, the fact that cotton conditions improved on the weekly Crop Progress report probably weighed upon prices as well. December cotton futures were steady at 84.90 cents/pound just after sunrise Tuesday, while March skidded 0.06 cents to 83.99.