Corn futures remained under pressure Thursday. Weakness spilling over from the wheat pit in reaction to news that some prohibited GMO wheat had been found in the Pacific Northwest was probably playing a part in the drop. Reports of sliding cash bids apparently undercut old crop futures as well. July corn had fallen 10.75 cents to $6.545/bushel by the Thursday close, while December slid 3.0 cents to $5.6275.
The international reaction to the GMO wheat news also seemed to weigh upon soybean futures Thursday. Old crop prices may have found a bit of support from talk that the recent surge in farmer sales was dwindling. Meanwhile, the deferred contracts were apparently caught between ideas that delayed plantings will reduce yields and cause acreage to shift from corn to beans. July soybean futures closed 6.0 cents lower at $14.9575/bushel Thursday afternoon, while July soyoil dipped 0.05 cents to 48.58 cents/pound, and July soybean meal skidded $3.5 to $440.8/ton.
Wheat futures proved quite vulnerable to international reactions to news that prohibited GMO wheat had been found growing in the Pacific Northwest. Japan banned U.S. imports and the E.U. says it will test all U.S. shipments over the short term. However, problems with spring wheat plantings seemingly supported Minneapolis prices. July CBOT wheat futures lost 4.0 cents to $6.9875/bushel at its Thursday settlement, while July KCBT wheat skidded 1.75 cents to $7.46, and July MGE futures edged down 0.25 cent to $8.155.
Cattle futures rose Thursday morning in response to higher beef prices Wednesday afternoon. However, they lost their upward momentum around midsession and moved decidedly lower as bulls reportedly gave up ideas that packers will pay up for country cattle this week. It will be interesting to see if they gave up too quickly Friday. June cattle dove 1.02 cents to 120.35 cents/pound to end the Thursday pit session, while December tumbled 1.20 to 124.97. Meanwhile, August feeder cattle futures plunged 1.45 cents to 144.17 cents/pound, and November sank 1.30 cents to 149.45.
Wednesday news of a planned Smithfield Foods takeover by a large Chinese firm appeared to support CME swine futures again Thursday. Despite widespread doubts about the speed with which increased U.S. exports might flow to China, traders rather obviously suspect that will be the case. Traders were unwilling to discount the potential for short-term seasonal gains as well. June hog futures settled 0.60 cents higher at 95.32 cents/pound Thursday, while December gained 0.52 cents to 80.67.