Corn futures continued declining Monday morning. The decline persisted due to another expectation of good condition rating on the weekly Crop Progress report. The weather outlook through the next two weeks will continue beneficial for crops and supportive of high yield potential across the Midwest. September corn slumped 12 cents to $3.975/bushel early Monday morning, while December declined 11 cents to $4.0425.
The soybean complex was depressed by the promising prospects of the new crop. The record acreage and high yield potential weighed on the market on Monday morning. Favorable weather conditions supported the crop development. Soybean ratings were expected to come in at the best in 20 years according to the condition rating poll results. However, there were large purchases from Chinese buyers when prices suffered a large setback. August soybean fell 28.25 cents to $12.715/bushel, and November soybean plunged 14.5 cents at 11.19 cents/bu. August soyoil lost 0.40 cents to 38.27 cents/pound, and August soymeal sagged $8.6 to $409.1/ton.
The general weakness in corn and soybean markets spilled over to the wheat markets. Wheat harvest added pressure to the market although wheat prospects in Canada was gloomy. Excessive wet conditions prevailed in Canadian Prairie provinces of Saskatchewan and Manitoba last week, which may result in severe crop damage. September CBOT wheat futures descended 18.25 cents to $5.6125/bushel, and September KCBT wheat dropped 18.25 cents to $6.69, and September MWE futures were down 13 cents at $6.595.
Cattle futures are higher at midday as the market continues to respond to last week’s sharply higher cash trade. The cash market traded $2 to $4 higher from the previous week to $157 in Kansas and $158 in Texas and were as much as $5 higher in Nebraska to $158-$159. Dressed trade reached $250/cwt. Slaughter schedules will return to normal this week. Beef prices continue to move higher along with the rest of the complex. Choice beef ended Thursday at $248.12 per cwt, only 1 cent below the all-time posted early last week. Select made a new high at $241.12. August cattle futures are 0.77 cents higher to 155.77 while October futures are 0.30 cents higher to 157.20. August feeder cattle are 1.67 cents higher to 218.12 cents/pound.
Hog futures turned decisively higher on Monday morning while grain and soybean markets were sharply lower. Firm pork prices boosted the hog futures, with a significant jump in ham price. Higher pork cutout certainly led considerable support to the cash market as well as the futures market. August hog futures were up 0.775 cents at 132.375 cents/pound and December soared 0.925 to 103.80 cents.
Cotton futures proved vulnerable in response to the weakness of the equity markets Monday. Strength exhibited by the US dollars as well as the concerns about large export expectations in Indian weighted on the market. In addition, China Zhengzhou cotton futures closed sharply on Monday. December cotton futures dove 1.38 cents to 70.68 cents/pound around noon (EDT) Monday, while March futures tumbled 1.33 cents to 71.69.