Favorable weather forecasts depressed corn futures. 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 6.0 cents to $3.6175/bushel late Tuesday morning, while December lost 5.5 cents to $3.7125.
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. Buzz to that effect apparently exaggerated today’s CBOT soy selling, since traders were thinking forthcoming dryness could cut the bean crop. August soybean futures fell 9.5 cents to $12.27/bushel shortly before lunchtime Tuesday, while November futures dropped 13.0 cents to $10.945. August soyoil slid 0.35 cents to 36.17 cents/pound and August soymeal stumbled $4.8 to $398.0/ton..
The wheat markets also came under pressure. Improved weather forecasts seemed to play a lesser role in Tuesday’s early 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 15.0 cents to $5.1975/bushel in late Tuesday morning action, while September KC wheat dove 13.75 cents to $6.1175/bushel, and September MWE wheat slumped 11.0 cents to $6.1025.
CME cattle traded mixed Tuesday morning. 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 market vulnerable to a sizeable short-term reversal. August live cattle sagged 0.15 cents to 158.90 cents/pound around midsession Tuesday, while December inched up 0.10 cents to 159.35. Meanwhile, August feeder futures climbed 0.80 cents to 220.97 cents/pound, and October feeders advanced 0.75 to 221.60.
Chicago hog prices continue suffering. Cash hog values remain under downward pressure, but the fact that pork quotes also ended Monday quite badly, thereby depressing 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 1.45 cents to 122.22 late Tuesday morning, while December slumped 0.55 cents to 96.80.