Favorable weather forecasts depressed corn futures Tuesday. Talk of dry early-August weather has supported the crop markets lately, but the latest forecasts suggest conditions will remain cool, with a possibility of widespread rain next week. That news undercut beans and corn. September corn sank 6.25 cents to $3.615/bushel in late Tuesday trading, while December lost 5.75 cents to $3.71.
The soy complex also dropped on weather news. The industry has recently worried about persistent August dryness, especially if temperatures warm. However, meteorologists reportedly think there’s a significant chance of Corn Belt rain next week, whereas there’s no excessive heat in the forecast. August soybean futures ended Tuesday having fallen 10.0 cents to $12.265/bushel, while November futures dropped 12.75 cents to $10.95. August soyoil slid 0.27 cents to 36.25 cents/pound and August soymeal stumbled $7.4 to $395.4/ton.
The wheat markets came under pressure as well. Improved weather forecasts seemed to play a lesser role in Tuesday’s wheat decline; traders reportedly cited huge global supplies and strong competition from other exporters for the drop. The morning breakdown also had a big technical component. September CBOT wheat plunged 14.75 cents to $5.20/bushel at their Tuesday settlement, while September KC wheat dove 14.0 cents to $6.115/bushel, and September MWE wheat slumped 10.75 cents to $6.105.
CME cattle traded mixed Tuesday. Nearby cattle futures closed rather weakly Monday, ending the day well below their early highs. That weakness seemingly triggered additional selling today, with traders apparently worrying that a ‘blow-off’ top will soon occur, thereby rendering the cash market vulnerable to a sizeable short-term reversal. August live cattle closed 0.27 cents lower at 158.77 cents/pound Tuesday, while December skidded 0.10 cents to 159.15. Meanwhile, August feeder futures climbed 1.25 cents to 221.42 cents/pound, and October feeders advanced 1.27 to 222.12.
Chicago hog prices continued their late decline. Cash hog values are still felling downward pressure, but the fact that pork quotes also ended Monday quite badly depressed CME futures. Bulls attempted to trigger a reversal in early trading, but the failure of that effort seemingly spurred fresh selling as lunchtime loomed. August hog futures tanked by 2.22 cents to 121.45 cents/pound Tuesday afternoon, while December slumped 0.75 cents to 96.60.