Crop markets were sharply lower

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Corn futures declined and marked the eighth consecutive session of lower quotes. The futures fell to the lowest level since August 2010 on the continuous chart. Pressure was mainly from the nearly ideal growing conditions. The weather maps suggested below normal temperatures and normal to above normal precipitation for the next week to ten days, which is nearly ideal for corn pollination. High yield potentials raised the expectations for record harvests. Weekly export sales were 363.1K tonnes for old crop and 381.6K tonnes for new crop, both in line with trade estimates. September corn closed 5.00 cents lower to $3.8625/bushel and December was 5.25 cents lower to $3.9275.

The soybean futures turned sharply lower in the end despite that they struggled to avoid the sustained losses during the session. The new-crop November contracts broke through the psychologically key $11 level for the first time since Jan 31. Promising harvest prospects with the possibility to exceed the past record put tremendous pressure on the market. Weekly export sales for new crop at 526.5K tonnes topped the pre-report expectations. China customs reported its June soybean imports up 7% from last month to 6.39 mmt. Rising demand may emerge soon to take advantage of such low prices compared to over $12 per bushel before. Asian palm oil gains seemingly boosted soyoil. August soybeans lost 13.75 cents to $12.3275/bushel, and November fell 10.75 cents to $10.93. August soyoil surged 0.34 cents to 37.48 cents/pound, while August soymeal descended $6.8 to $399.3/ton.

The wheat markets followed the slide of corn and soybeans and ended the day lower. Winter wheat harvest in Kansas is continuing and is expected to finish in a week if the weather cooperates. Surging supplies bottomed the KC wheat to $6.50 level. Uncertain demand also added the pressure to the market. In addition, weekly export performance was below expectations. USDA is expected to boost all wheat production to 1.972 billion bushels from June forecast at 1,943 million bushels with spring and durum wheat at 544 million and 59 million on Friday’s report. September CBOT wheat futures lost 2.75 cents to $5.485 bushel, September KCBT wheat futures dropped 6.00 cents to $6.4725/bushel and September MWE futures skidded 6.25 cents to $6.41.

Cattle futures were sharply lower on Thursday. Futures were under pressure as trading funds and other speculators unwound long positions sparking the steepest futures setback in several weeks. In addition to negative technical signals, weakness in the stock market was also seen fueling the selling. Additional cash market trade unfolded Thursday. Nebraska cattle sold at $156, down $1 to $2 from Wednesday and down $2 from last week. Similarly, Kansas traded cattle at $156, also down $2 from last week. The cutouts were higher at midday. The Choice cutout was 86 cents higher to $251.43/cwt while Select was 70 cents higher to $242.96. Traders are concerned that beef demand will begin to suffer due to record high prices along with seasonally weak demand. August live cattle settled 2.65 cents lower to 148.15 cents/pound while December closed 1.65 cents lower to 152.40 cents. Meanwhile, August feeder cattle were down the daily 3 cent limit to 210.60 cents/pound.

The declines exhibited in cattle futures spilled over to the hogs market. The hog futures closed with a mixed note. Although some gains appeared in the cash market, losses in whole sale market probably depressed the futures. Daily slaughter number was lower year-over-year. Anticipation of roaring supplies has probably weighed on the market. August hog futures were down 1.65 cents at 127.95 cents/pound and December was down 1.5 cents to 103.095 cents.

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