The corn market reacted poorly to today’s USDA reports. The grain and soy markets were weak prior to the late Thursday morning release of the USDA Crop Production and WASDE reports. Corn prices slid despite a strong result on the weekly Export Sales report. The monthly information proved generally bearish, due largely to the USDA’s increase in the 2013/14 crop forecast and rise in next year’s carryout. December corn fell 15.75 cents to $4.5675/bushel soon thereafter, while May dropped 15.5 cents to $4.775.
The soy complex posted a mixed response to Thursday’s data. Soybean and product prices also traded weakly despite a vigorous Export Sales figure in early trading. That changed modestly with the release of the monthly reports, since the USDA data seemed somewhat more negative than was generally anticipated. November soybeans bounced 3.75 cents to $13.62/bushel in late Thursday morning action, whereas October soyoil declined 0.28 cents to 42.44 cents/pound, and October soymeal rallied $5.0 to $434.2/ton.
The USDA reports were also negative for the wheat markets. The Export Sales data for wheat matched pre-report forecasts, so it had little impact upon prices. In contrast, the monthly reports were seen as rather bearish for the wheat outlook, since the USDA boosted its carryout forecasts slightly. December CBOT wheat sank 9.25 cents to $6.3875/bushel just before the lunch hour Thursday, while December KCBT wheat lost 5.5 cents to $6.8925, and December MGE futures dipped 4.0 cents to $7.06.
Cattle futures were narrowly mixed Thursday morning. Cattle traders seemed unwilling to push CME prices in either direction this morning, which probably reflected the futures industry’s general ambivalence ahead of the late-morning WASDE and Crop Production reports. Ultimately, the Chicago market is probably waiting for the results of this week’s cash trading. October cattle futures rose 0.15 cents to 125.20 cents/pound late Thursday morning, while December inched up 0.05 cents to 128.62. Meanwhile, October feeder cattle surged 0.95 cents to 159.17 cents/pound, and January jumped 1.10 cents to 159.35.
Cash and wholesale strength boosted hog futures this morning. Swine futures declined Wednesday due to fall price concerns, with technical considerations likely exaggerating the decline. However, they bounced Thursday morning in response to strong cash and wholesale reports posted late Wednesday afternoon. October hog futures advanced 0.55 cents to 90.85 cents/pound around midsession Thursday, while December advanced 0.55 cents to 87.80.
Cotton futures gave back early gains. The Export Sales report seemed bullish for the cotton outlook for a second straight week, which prompted an early rally in the ICE market. However, traders then reversed those gains in the aftermath of the monthly reports, because those indicated the USDA boosted its carryout forecast despite a modest reduction in the predicted 2013/14 harvest. December cotton futures skidded 0.11 cents to 84.24 cents/pound at midday Thursday, Thursday, while March slipped 0.09 to 83.80.