Several factors seemed to undercut corn Thursday. Forecasts for improved rainfall in mid-September seemed to depress the grain and soy complexes Thursday morning, while corn traders were apparently reacting to the looming start of the Midwest harvest and the resulting supply surge. A technical breakdown probably attracted additional selling. December corn dove 9.0 cents to $4.605/bushel late Thursday morning, while July fell 9.0 cents to $4.88.
The soy complex was mixed Thursday morning. Improving precipitation prospects for mid-September seemed to weigh upon the CBOT soy complex Thursday morning. However, it’s entirely possible that the current soybean crop will have been irreparably damaged by that point, so the rain may do little to boost production. Strong demand may also be supporting the nearby bean and meal contracts. November soybeans bounced 3.5 cents to $13.56/bushel around midsession Thursday, while October soyoil sank 0.32 cents to 43.31 cents/pound, but October soymeal edged $2.1 higher to $430.1/ton.
Wheat futures declined in concert with corn in early Thursday trading. There was little news pertinent to the wheat markets this morning, which seemed to cause traders to track shifts in the corn pit. The fact that recent dryness has allowed the industry to make huge strides in the wheat harvest may also be undercutting prices. December CBOT wheat dropped 7.0 cents to $6.39/bushel just before lunchtime Thursday, while December KCBT wheat slid 8.0 cents lower to $6.90 and December MGE futures sagged 7.5 cents to $7.145.
Cattle futures continued their late decline Thursday morning. Modest wholesale gains have offered some evidence supporting a seasonal cattle/beef price advance during the days and weeks ahead. However, traders are reportedly concerned about the potential for another cash market decline this week. October cattle futures descended 0.60 cents to 125.40 cents/pound in late Thursday morning trading, while December slumped 0.75 cents to 129.15. October feeder cattle dipped 0.22 cents to 159.02 cents/pound, while January lost 0.30 cents to 158.35.
Hog futures couldn’t sustain early Thursday highs. Both the cash and wholesale markets have proven quite strong lately, so traders hope recent slaughter reductions and firm post-Labor Day demand will power a sizeable September rally. However, ideas that such strength could be quite temporary seemed to drag futures back down later in the morning. October hog futures had risen just 0.27 cents to 89.40 cents/pound by late Thursday morning, whereas December skidded 0.07 cents to 85.77.