Corn futures followed soybeans lower Monday night. The weekly USDA Crop Progress report indicated a 2% drop in good-to-excellent ratings for U.S. corn, which probably exceeded expectations. However, given the gains posted earlier in the day and the surprisingly good soy result, corn futures followed the soy complex lower. September corn slid 2.0 cents to $3.5675/bushel early Tuesday morning, while December lost 2.0 cents to $3.6725.
Soybeans led the crop markets downward overnight. CBOT traders expected the Crop Progress report to indicate a 1% drop in the good-to-excellent categories on yesterday’s report, but it stated that result as being unchanged at 71%. That 10-year high for late July weighed on the soy complex. September soybean futures fell 14.25 cents to $10.81/bushel Monday night, while November futures dropped 13.0 cents to $10.665. September soyoil tumbled 0.50 cents to 35.62 cents/pound and September soymeal slumped $2.7 to $358.1/ton.
The Crop Progress report is also weighing on wheat values. It indicated that spring wheat conditions were unchanged at relatively high levels, while the winter wheat harvest is close to wrapping up. The data didn’t seem particularly negative for the golden grain markets, but they proved unable to overcome the downdraft created by sliding bean and corn quotes. September CBOT wheat dipped 1.25 cents to $5.4275/bushel in early Tuesday trading, while September KC wheat sagged 0.5 cent to $6.38/bushel, and September MWE wheat slipped 0.75 to $6.2275.
Cattle futures are beginning Tuesday strongly. Despite Monday’s surprising weakness and flat-to-mixed wholesale quotes later in the day, cattle futures posted significant gains overnight. That probably reflects trader optimism about the likely outcome of this week’s cash trading. October live cattle climbed 0.52 cents to 156.75 cents/pound soon after dawn Tuesday, while December advanced 0.67 cents to 157.00. Meanwhile, September feeder futures jumped 1.22 cents to 221.90 cents/pound, and November feeders surged 1.37 cents to 219.90.
Hog futures proved generally weak last night. The cash hog markets declined Monday, whereas pork cutout values edged modestly higher. The cash market losses confirmed the current market bias, which apparently prompted fresh CME selling. October hog futures sank 0.60 cents to 103.02 cents/pound early Tuesday morning, while December stumbled 0.45 cents to 94.90.
Cotton futures bucked the negative crop market trend. The USDA Crop Progress report stated good-to-excellent readings for the current cotton crop 1% lower than last week, which translated into modest ICE gains overnight. The fact that the crop is well along, as well as forecasts for southern Plains moisture next week, probably limited the rise. December cotton gained 0.18 cents to 64.42 cents/pound shortly after sunrise Tuesday, while March futures rose 0.10 cents to 65.11.