Favorable weather forecasts continue depressing corn and beans. After firming over the previous week, corn and soybean futures turned lower Tuesday and kept sliding overnight. Ultimately, a shift toward wetter Corn Belt forecasts next week triggered the decline. September corn slipped 1.25 cents to $3.6025/bushel in early Wednesday action, while December lost 1.5 cents to $3.695.
The soy complex is also dropping on weather news. The soy industry has recently worried about persistent August dryness, since beans are vulnerable to significant damage at that time. Thus, forecasts including rainfall in forecasts for next week sparked a quick downward reversal Tuesday. The decline persisted Tuesday night. August soybean futures fell 8.0 cents to $12.185/bushel early Wednesday morning, while November futures dropped 8.75 cents to $10.8625. August soyoil sank 0.24 cents to 36.01 cents/pound and August soymeal stalled at $395.4/ton.
The wheat markets are proving surprisingly firm. The global wheat situation looks likely to burdened with excessive supplies for the foreseeable future, so relatively expensive American grain has been suffering persistent pressure. However, wheat futures bounced modestly overnight. The firmness in these conditions suggests growing support at current levels. September CBOT wheat gained 2.0 cents to $5.22/bushel Tuesday night, while September KC wheat edged up 2.0 cents to $6.135/bushel, and September MWE wheat rose 2.5 cents to $6.13.
CME cattle are trying to resume their huge summer rally. Nearby cattle futures dipped Tuesday, thereby reflecting industry suspicions that a major top could be looming. However, packers are reportedly earning good profits at this point, so having beef quotes march upward again yesterday won’t discourage them from paying up for cattle later this week. Discounts built into CME futures could give them an upward bias. August live cattle climbed 0.35 cents to 159.12 cents/pound as Wednesday dawned over Chicago, while December rallied 0.40 cents to 159.55. Meanwhile, August feeder futures jumped 0.95 cents to 222.37 cents/pound, and October feeders surged 0.92 to 223.05.
Losses in hog futures persisted Tuesday night. CME traders rather clearly think pork demand has weakened in the wake of the early-summer surge. They may also be expecting more hogs than previously thought. However, cash and wholesale prices stabilized Tuesday, which may allow Chicago prices to firm as well. August hog futures tumbled 0.67 cents to 120.77 cents/pound in early Wednesday trading, while December slumped 0.30 cents to 96.30.
Cotton futures stabilized Tuesday night. Cotton futures declined Tuesday in response to the improvement in crop ratings on Monday’s weekly Crop Progress report. Concurrent soy and equity index losses probably weighed on prices as well. Yet, as in the wheat markets, traders seem to think recent losses will spur improved demand in the weeks ahead. December cotton inched up 0.08 cents to 65.09 shortly after sunrise Wednesday, while March futures added 0.09 cents to 66.00 cents/lb.