The crop markets moved mostly lower Wednesday night. Corn futures declined modestly overnight. A lack of substantive news seemed to remind traders of the bearish fundamental situation, especially if the forthcoming U.S. crop sets a fresh record. The industry is looking forward to the weekly Export Sales report later this morning. September corn slid 2.75 cents to $3.605/bushel early Thursday morning, while December slumped 2.75 to $3.715.
The soy complex is mixed to mostly lower. The lack of news also appears to be hampering bulls in the soy complex this morning, with the prospect of a record-smashing fall crop hanging over the market. Traders are probably looking for some very good numbers on today’s USDA Export Sales report. September soybean futures edged up 1.75 cents to $10.9825/bushel shortly after dawn Thursday, while November futures lost 0.5 cent to $10.795. September soyoil dipped 0.09 cents to 35.77 cents/pound, whereas September soymeal added $1.2 to $362.2/ton.
The wheat markets set back as well last night. After having staged a substantial rally over the past week, wheat futures dipped in Wednesday night action. That probably represented some profit-taking in the wake of the move, especially after CBOT futures topped their 40-day moving averages. The volatile Black Sea situation and its potential impact on the global wheat market probably limited losses. September CBOT wheat sagged 3.25 cents to $5.6475/bushel in early Thursday trading, while September KC wheat skidded 1.5 cents to $6.5475/bushel, but September MWE wheat rose 1.0 to $6.44.
Cattle futures are starting Thursday on a mixed note. CME cattle ended Wednesday firmly despite increasing signs of wholesale weakness and proved decidedly mixed last night. Traders likely expect this week’s cash prices to decline somewhat, but the outcome might easily top the sizeable discounts already built into Chicago quotes. October live cattle stumbled 0.10 cents to 155.85 cents/pound as Thursday dawned over Chicago, while December inched up 0.10 to 156.00. Meanwhile, September feeder futures crept up 0.02 cents to 220.75 cents/pound, and November feeders added 0.05 to 218.20.
Hog futures have resumed their summer breakdown. Pork cutout values fell rather sharply Wednesday afternoon, although the cash markets posted a surprisingly firm showing. Thus, the expiring August contract edged upward overnight, while deferred futures proved relatively weak. October hog futures tumbled 0.70 cents to 101.50 cents/pound early Thursday morning, while December dropped 0.92 cents to 93.87.
Cotton futures are facing technical resistance. The fiber market rallied in concert with the grain and soy complexes Wednesday and turned mostly lower in concert with its crop counterparts last night. The result of the weekly Export Sales report is hanging over the market, but bulls are also facing technical resistance in the form of their 10-day moving averages (where they failed yesterday). December cotton slipped 0.10 cents to 64.25 cents/pound just after sunrise Thursday, while March futures sank 0.11 cents to 65.02.