Crop markets were mixed to start the week
Corn futures turned downward Sunday night. Although short-term weather forecasts are looking hot and dry once again and the industry got news of large South Korean purchases over the weekend, corn futures dipping in Sunday night-Monday morning trading. Ideas that the corn crop is largely made probably limited the impact of supportive news. December corn declined 1.25 cents to $4.67/bushel early Monday morning, while May slipped 1.75 cents to $4.8775.
The soy complex rallied on droughty weather forecasts. Weekend weather forecasts imply persistently hot, dry weather during the days ahead, which will probably further diminish the size of the fall soybean harvest. Traders are apparently looking for worsening conditions on this afternoon’s Crop Progress report and lower yields on Thursday’s Crop Production report. November soybeans climbed 8.25 cents to 13.76/bushel around dawn Monday, while October soyoil rose 0.25 cents to 43.68 cents/pound, and October soymeal added $3.0 to $437.7/ton.
The wheat markets gave back a portion of Friday’s bounce this morning. After posting their first rise since August 26 last Friday, wheat futures declined to start this week. Concurrent slippage in the corn pit probably weighed upon golden grain values, as did ideas that the summery weather will help farmers complete the spring wheat harvest very quickly. December CBOT wheat sank 4.0 cents to $6.4375/bushel in early Monday action, while December KCBT wheat slid 3.0 cents to $6.925 and December MGE futures lost 2.5 cents to $7.1025.
Cattle futures turned mixed last Friday. Beef prices dipped Thursday and Friday, thereby seeming to prompt country cattle trading at steady-lower prices. The fact that Southern Plains cattle traded at unchanged levels actually appeared to boost the October future in afternoon trading. That may have signaled early strength this week. October cattle futures settled 0.45 cents higher at 125.67 cents/pound to end the week, while December slumped 0.10 cents to 129.02. October feeder cattle fell 0.77 cents to 158.02 cents/pound, and January lost 0.27 cents to 158.00.
Hog futures resumed their recent rally Friday. After turning sharply lower Thursday, cash hog and wholesale values bounced modestly to end the week. Talk that slaughter would again fall well below the year-ago result apparently exaggerated the futures resurgence. That seemingly bodes well for today’s action as well. October hog futures jumped 1.50 cents to 90.90 cents/pound at Friday’s settlement, while December surged 1.07 cent to 87.00.
Cotton rose slightly to start the week. Concerns about the strength of Chinese demand have weighed upon cotton futures lately, but last Friday’s weekly Export Sales report contradicted that pessimism. Indeed, weekend news that China is starting up its big cotton stockpiling programs supported futures at the commencement of this week’s trading. December cotton futures gained 0.11 cents to 83.32 cents/pound just after sunrise Monday, while March rallied 0.21 to 82.80.