Weather forecasts may be depressing corn futures again Thursday. The weekly USDA Export Sales report indicated modest U.S. corn marketings last week, which met industry expectations. And yet, CBOT futures moved lower. That probably reflected general crop market weakness, as well as wet Midwest forecasts on the latest weather reports. July corn steadied at $4.41/bushel late Thursday morning, while December lost 1.75 cents to $4.40.
The soy complex is also under pressure. Although the Export Sales report seemed rather favorable, the Chicago bean and meal markets turned decidedly lower once again. Favorable forecasts are probably weighing on new crop prices to some extent, but it looks as if strong technical selling is depressing old crop prices. Asian palm strength is apparently supporting the oil market. July soybeans plunged 20.25 cents to $14.2525/bushel around midsession Thursday, while July soyoil surged 0.29 cents to 38.71 cents/pound, and July soymeal slumped $7.2 to $475.1/ton.
The wheat markets were also proving rather weak. Export sales of new crop wheat far exceeded industry expectations, which in more normal circumstances might have sent prices sharply higher. However, wheat futures declined in concert with the corn market. Favorable weather news may also be weighing on prices, despite the fact that rain might actually hurt the winter wheat crop at this juncture. July CBOT wheat futures slid 2.5 cents to $5.8675/bushel just before lunchtime Thursday, while July KCBT wheat skidded 1.0 cent to $7.0325 and July MWE futures sagged 2.0 to $6.82.
Improving cash expectations seemed to boost cattle futures Thursday morning. Anticipation of late-week wholesale losses seemed to trigger CME cattle selling Wednesday. However, futures reversed to the upside rather sharply this morning, which probably reflects talk of firming packer bids at feedlots. August cattle jumped 1.37 cents to 143.57 cents/pound in late Thursday morning action, while December advanced 0.77 to 149.37. Meanwhile, August feeder cattle soared 1.87 cents to 204.75 and October leapt 1.72 to 205.55.
Hog futures were mixed at midsession. Trader disappointment with Wednesday’s late-afternoon cash and wholesale reports is apparently weighing upon the nearby contracts today. However, the late-2014 and 2015 contracts posted sizeable gains, thereby seeming to reflect long-term ag market bullishness. August hog futures sank 0.27 cents to 129.67 cents/pound shortly before midday Thursday, while December ran up 1.25 cents to 97.50.