Talk of improved weather is pressuring corn and beans. Recent dryness in the U.S., and forecasts for more of the same, have sped the domestic corn harvest, while South American planting weather has improved. Those developments are reportedly weighing on the crop markets to start the week. December corn futures sank 2.5 cents at $3.7425/bushel Sunday night, while May lost 2.0 to $3.96.
More liquid meal conditions are undercutting the soy complex. As in the corn market, discussions of dryer harvest weather in the U.S. and wetter planting weather in Brazil are undermining bullish arguments in the bean and meal markets. Concurrent gains in palm and crude oil prices failed to bolster soyoil quotes as well. Bears are likely looking for a big surge in harvesting on today’s Crop Progress report. January soybean futures dropped 6.25 cents to $10.43/bushel in early Monday trading, while December soyoil dipped 0.04 cents to 34.76 cents/pound, and December soymeal slumped $4.9 to $384.1/ton.
Wheat futures are also facing early Monday pressure. Weakness spilling over from the corn and bean pits isn’t encouraging wheat market bulls either. That’s especially true in light of news that the U.S. was shut out of a fresh Egyptian tender over the weekend. December CBOT wheat sagged 3.25 cents to $5.2925/bushel early Monday morning, while December KC wheat inched 2.25 cents lower to $5.915/bushel, and December MWE wheat declined 2.75 to $5.715.
Cash weakness weighed on cattle futures Friday. The cattle market seemed likely to end last week firmly, but bulls apparently threw in the towel when they heard Kansas cattle were trading $2 lower at $168/cwt. Given that news, the poor CME close wasn’t surprising. Late beef losses also suggest a weak opening today. December live cattle futures ended Friday having plunged 1.27 cents to 166.05 cents/pound, while April futures dropped 0.57 to 165.60. Meanwhile, November feeder cattle futures slid 0.07 cents to 234.15 cents/pound, and January feeders stalled at 228.47.
Talk of stable cash prices may have encouraged hog bulls. Cash hog prices were called steady Friday morning, although midsession quotes weren’t available. The implied firmness despite surging supplies and lower pork prices probably encouraged bullish CME traders. The modest spot losses posted late in the day may lead to a firm Monday opening. December hog futures jumped 0.82 cents to 88.02 cents/pound at Friday’s CME close, while April hogs leapt 1.10 to 89.15.
Cotton futures are struggling at technical support. The cotton market is still hurting for news. Sunday night firmness in the U.S. dollar and slippage in equity index futures, as well as concurrent grain and soy losses, apparently depressed ICE prices to start the week. The December contract’s performance around its 40-day moving average today could set the tone for the week. December cotton futures tumbled 0.48 cents to 63.97 cents/pound just after sunrise Monday, while March futures lose 0.32 cents to 62.60.