Corn futures struggled to avoid sustained losses on early Monday morning. Adjustments to USDA’s Grain Stocks and Acreage reports seemed to continue in the corn market. June 1 corn stocks came in 100 million bushels lower than expected, but corn acreage is 2 million higher. September corn futures prices skidded 2.75 cents to $5.4425 per bushel in early Monday trading, while December corn is down 4.75 cents to $5.0625 per bushel.
Soybean futures rallied early Monday morning. However, soybean trading continued to react to the news out from last Friday’s USDA reports overnight. USDA boosted its estimate for soybean planting to 77.7 million acres from 77.1 million in March. The market saw that as negative. The old-crop soybean and meal markets remain strong with USDA finding low levels of stocks on June 1 at 435 million bushels. August soybean futures climbed 11.75 cents to $14.4275/bushel. August soyoil inched 0.26 cents up to 46.55 cents/pound, and August soybean meal advanced $3.4 to $438.3/ton. November soybean prices elevated 2.25 cents to $12.5425/bushel.
Wheat futures moved higher this morning. Much lower reported June 1 stocks is supportive to the market. However, higher than expected planted acreage USDA’s Acreage report last week was still holding prices in check. September CBOT wheat gained 3.25 cents to $6.61/bushel, while September MGE wheat futures rose 3.25 cents to $7.7825/bushel, while September KCBT wheat increased 4.25 cents to $6.95/ bushel.
Cattle futures are expected to open steady. Cash cattle were mostly steady last week at $120 per cwt in the southern Plains. Beef prices were mixed on Friday, but face seasonal pressure into the summer. Slaughter schedules will be reduced this week due to the holiday. Despite Friday’s pullback, futures price action last week was very positive suggesting futures have already made a seasonal low.
The hogs futures are expected to open lower in response to Friday afternoon’s Quarterly Hogs and Pigs report. Talk of sow farrowing intentions for the Sep-Nov period up 1% from 2012 seemed to add downward pressure. In addition, market hogs in the two largest weight categories were up 1% year over year. On the other side, last Friday’s grain crop reports stated corn acres will be up year over year and corn supplies are set to expand, probably pressuring feed prices later this year.
Cotton futures posted losses regarding to the news from USDA report that US cotton acreage for 2013 was 10.251 million acres. That is an increase of 225,000 acres compared to the March Prospective Planting report. Beneficial weather in Texas has improved in the last few weeks. That could boost yields this year. December cotton is down 68 points to 83.33 cents per pound.