Talk of record harvests seems to depressing the Midwest crop markets. Little grain or soy news emerged Wednesday night, which may have opened the door to the persistent bearish influence of record U.S. corn and soybean crops. Traders may also be squaring positions ahead of today’s weekly USDA Export Sales report and next Monday’s monthly Crop Production and WASDE reports. December corn futures slid 2.0 cents to $3.6825/bushel early Thursday morning, while May sagged 1.75 to $3.90.
The soy complex couldn’t sustain yesterday’s rebound. Although Wednesday’s soy bounce was impressive, bullish couldn’t maintain the upward momentum last night. Most-active January beans are bumping up against resistance associated with their 10-day moving average. Traders may want to avoid pushing things until after the Export Sales report and or next Monday’s big monthly releases. January soybean futures fell 6.0 cents to $10.1325/bushel Wednesday night, while December soyoil sank 0.14 cents to 32.58 cents/pound, and December meal lost $1.6 to $373.7/ton.
Talk of weak export demand is again undercutting the wheat markets. Weakness in corn and soy futures apparently spilled over into wheat futures last night. And while the domestic situation isn’t all that bearish, the global is flooded with grain. That’s hurting U.S. export prospects and depressing prices. December CBOT wheat slumped 3.0 cents to $5.2175/bushel in early Thursday trading, while December KC wheat dipped 3.25 cents to $5.8125/bushel, and December MWE wheat slipped 2.0 to $5.5775.
Demand concerns apparently weighed on cattle futures Wednesday. The cattle/beef situation remains very tight, as reflected by greatly elevated cattle and beef prices. However, traders worry that recent beef weakness reflects declining demand as consumers shift to pork and chicken. The late surge in choice beef cutout and afternoon electronic gains seemingly bode well for today’s opening. December live cattle futures closed 1.45 cents lower at 165.20 cents/pound Wednesday, while April futures dove 1.02 to 165.25. Meanwhile, January feeder cattle futures plunged 1.40 cents to 230.20 cents/pound, and March feeders dove 0.97 to 227.55.
Increasing supplies worry hog market bulls. The spot hog and pork markets remained persistently weak during late October. CME traders worry that those the spot market trends will worsen if hog supplies post their usual late-year surge. However, cash hog and pork prices are trying to stabilize, and yesterday’s late CME strength, so futures look likely to open moderately higher this morning. December hog futures declined 0.85 cents at 87.12 cents/pound at their Wednesday close, while April hogs dipped 0.60 to 88.10.
Cotton may be reacting to equity gains. The cotton market hasn’t acted well lately, which has probably reflected the surging value of the U.S. dollar and weak export prospects. However, domestic stock market gains have also impressed, thereby suggesting domestic apparel demand will remain robust. Thus, cotton futures seemed to post a belated reaction to Wednesday’s stock rally. December cotton futures rose 0.20 cents to 62.91 cents/pound as Thursday dawned over New York, while March futures gained 0.09 cents to 61.96.