Corn futures struggled to avoid sustained losses and tried to stabilize Tuesday after the contracts fell to multi-year lows. Optimism about the crop prospects is clearly a significant factor at this point. Crop condition ratings came in line with expectations at 75% good to excellent, the highest rating for early July in 15 years. USDA reported that 15% of the crop was silking as of Sunday. September corn dove 2 cents to $3.98/bushel, while December lost 1.75 cents to $4.045.
The soybean market continued declining for a seventh straight session, hitting multi-month lows on Tuesday. The declines persisted due to the ideal weather conditions that will be supportive to the crop outlook. The U.S. crop condition rating for soybeans held steady for the third consecutive week at 72% good to excellent. This is the highest rating for this point in the season since 1994 and is 10 points above the ten-year average. August soybeans were down 26.75 cents to $12.465/bushel, and November moved 9.25 cents lower to $11.1625. August soyoil were 0.52 cents lower to 37.98 cents/pound, while August soymeal fell $7.8 to $400.9/ton.
The wheat markets posted a mixed note on Tuesday morning. After sharp losses Monday that carried CBOT July wheat to a four year low for a nearby contract, prices are attempting to stabilize. However, the winter wheat harvest added downward pressure to the markets. USDA reported that the winter wheat harvest moved to 57% complete only 3 points below the 10 year average. Harvest is now focused on Kansas, Nebraska and the eastern Midwest. Spring wheat condition ratings held steady with last week at 70% good-to-excellent only one point below the ten-year average. September CBOT wheat futures dropped 0.75 cents to $5.565 bushel, September KCBT wheat declined 1.25 cents to $6.685, and September MWE futures descended 1.5 cents to $6.6025.
Cattle futures are lower at midday. Last week’s holiday shortened week has translated into additional supply of cattle to market this week. The larger supply coupled with concern about consumer demand at these price levels has prompted some profit-taking in futures. August futures are leading the decline as one large commodity fund is rolling their position by selling August futures and buying October. The rolling process began today and will continue over the next four days. Tuesday’s price action appears to be a continuation of Monday’s pullback from the early highs. Trade is monitoring beef prices closely for signs of weakening demand. August cattle edged 1.25 cents lower to 153.72 with December 0.375 cents lower to 154.82. Meanwhile, August feeder cattle were down 1.275 to 216.72 cents/pound.
Hog futures were mixed Tuesday morning. Higher cash prices and low receipts on Monday raises concern about hog supplies going forward as demand is still strong. Hog slaughter on Monday totaled 487,000 head, down 4% from a year ago. Futures are also garnering support from pork prices which have moved to new high. August hog futures decreased 0.725 cents at 131.1 cents/pound and December rose 0.375 cents to 104.425 cents.