The wheat markets apparently weighed upon corn futures Monday morning. After rising in concert with wheat futures Sunday night, corn futures followed golden grain values downward this morning. The depressing effect of early-morning reports seemingly outweighed the supportive result of the weekly Export Inspections report. December corn futures dipped 2.0 cents to $4.395 by late Monday morning, while May futures slipped 1.5 cent to $4.6075/bushel
The Export Inspections boosted the soy complex. The weekly Export Inspections report stated the latest figure at 59.3 million bushels, whereas a result in the 42-45 million was expected. That surprisingly large result apparently sparked fresh soybean and meal buying. The meal bounce may also have spurred shifts by traders in the crush spreads, which in turn may have caused the surprising drop in oil values. November soybeans rallied 6.0 cents to $12.9725/bushel around midsession Monday, while December soyoil skidded 0.01 cents to 41.67 cents/pound, and December soymeal gained $2.6 to $412.7/ton.
Global supply news sank the wheat markets. Recent talk of tight global supplies and surging exports had supported wheat futures. However, Argentine officials announced this morning that their current crop had easily topped prior forecasts. Their counterparts in Kazakhstan also stated their crop was larger than forecast by the USDA. The Export Inspections report also disappointed. December CBOT wheat tumbled 8.0 cents to $6.9775/bushel in late Monday morning trading, while December KCBT wheat fell 8.75 cents to $7.60, and December MGE futures dropped 8.0 to $7.5225.
Cattle futures bounced slightly in early-week trading. After suffering a stunning reversal in the wake of strong cash news last week, cattle futures rebounded slightly at the start of this week’s action. Traders may be expecting country market firmness despite the wholesale market’s historical tendency to weaken late in many months. December cattle futures rose 0.07 cents at 132.10 cents/pound just before lunchtime Monday, while April crept up 0.20 cents to 134.97. Meanwhile, November feeder cattle added 0.15 cents to 167.00 cents/pound, and January ran up 0.27 cents to 166.87.
Anticipation of seasonal weakness may be depressing the hog market. While surprisingly small hog supplies have supported the whole hog and pork complex lately, that may change in the near future. The September USDA Hogs & Pigs report implied late-2013 hog supplies would average about 1% over year-ago rates. Such gains might exaggerate the markets’ historical tendency for late-year weakness. December hog futures sank 0.15 cents to 87.80 cents/pound by late Monday morning, while April inched up 0.05 cents to 89.90.
Cotton futures turned lower Monday morning. Although the latest news from China seemed to support the cotton market Sunday night, ICE values turned modestly lower by late Monday morning. The drop may have marked a response to the latest exchange report on certificated stocks, which stated the weekly increase at 14,946 bales, which represented a 25.5% increase from last week. December cotton slid 0.06 cents to 83.05 cents/pound around midday Monday, while March sagged 0.15 to 84.17.