Corn market still week Thursday at midday
The corn market remained weak Thursday morning. Although hot, dry weather forecasts are supporting the crop markets at this point, the preliminary results of a big crop tour this week suggest corn yields will top the latest USDA forecast. Overnight weakness caused by that news was reinforced by the weekly USDA Export Sales report, which stated last week’s result well below expectations. September corn sank 4.5 cents to $4.935/bushel by late Thursday morning, while December dove 13.0 cents to $4.7025.
Soybean and meal futures rebounded from overnight lows. Wire service reports cited technical resistance and profit-taking for the Wednesday night soybean slide. The disappointing crop tour results for Iowa and Illinois beans may have played a role in the subsequent bounce. The Export Sales report was not helpful to the bullish cause. September soybeans had crept up 1.25 cents to $13.3425/bushel around midsession Thursday, while November beans dropped 5.75 to $12.9825. September soyoil sagged 0.06 cents to 42.76 cents/pound, and September soymeal inched $0.1 lower to $421.4/ton.
Wheat futures declined in concert with corn and soybeans Thursday morning. The wheat markets followed their CBOT counterparts downward Thursday morning, with the bearish implications of huge fall harvests apparently depressing prices. The bullish cause wasn’t helped by large crop forecasts out of Canada Wednesday and from Germany early this morning. September CBOT wheat dipped 4.75 cents to $6.34/bushel around midday Thursday, while September KCBT wheat slid 2.25 cents to $6.9725, and September MGE futures lost 4.25 cents to $7.245.
Cattle futures remained weak in early Thursday trading. Although CME traders remain generally optimistic about the cattle and beef outlook, they have an historical tendency toward late-August weakness. That probably reflects the completion of pre-Labor Day buying by grocers. Thus, Wednesday afternoon beef losses were apparently weighing upon prices this morning. October cattle futures tumbled 0.57 cents to 127.40 cents/pound as the lunch hour loomed Thursday, while December slumped 0.57 cents to 129.90. September feeder cattle futures skidded 0.10 cents to 157.60 cents/pound, and November lost 0.17 to 160.12.
Cash and wholesale losses are depressing CME hog futures as well. Discounted CME hog prices indicate the industry is expecting large seasonal losses at the cash and wholesale levels through late summer and fall. Nevertheless, Wednesday afternoon news confirming substantial cash and pork price declines weighed upon the Chicago market this morning. October hog futures tanked by 0.77 cents to 85.05 cents/pound in late Thursday morning trading, while December descended 0.60 cents to 82.02.