Corn futures continued their post-report decline Tuesday morning. Although yesterday’s Acreage report seemed supportive of new-crop corn futures, the June 1 Stocks result easily topped expectations and sent the whole complex lower. Having the weekly Crop Progress report depict another very high condition rating for U.S. corn is also depressing prices. September corn sank 6.5 cents to $4.1225/bushel late Tuesday morning, while December lost 6.25 to $4.19.
The soy complex is also slumping. New-crop soy contracts led the whole complex lower Monday after the USDA stated planted acreage at a record high Monday. Prices seemed to stabilize at modestly lower levels overnight, but have resumed their slide today. Tumbling grain prices aren’t helping the bullish cause either. August soybeans dove 15.0 cents to $13.1475/bushel shortly before lunchtime Tuesday, while August soyoil slid 0.29 cents to 38.66 cents/pound, and August soymeal sagged $5.6 to $425.1/ton.
The wheat markets also remain under pressure. The quarterly Grain Stocks report was somewhat supportive of wheat futures, but both winter and spring wheat acreage on the Acreage report apparently spurred widespread selling. News that U.S. wheat was shut out of a big Egyptian tender reemphasized the bearish global situation as well. September CBOT wheat futures fell 6.25 cents to $5.71/bushel around in late Tuesday morning action, while September KCBT wheat slumped 14.75 cents to $6.855, and September MWE futures dropped 10.25 to $6.6675.
Resurgent beef prices are boosting cattle futures. Traders recently suspected late-June gains in cash cattle and wholesale prices had run their course and the complex was due for a seasonal setback. Futures suffered accordingly. However, beef cutouts surged to fresh highs Monday afternoon, thereby giving rise to fresh bullishness. August cattle surged 1.25 cents to 151.32 cents/pound around midsession Tuesday, while December jumped 1.30 to 155.02. Meanwhile, August feeder cattle leapt 2.45 cents to 215.22 cents/pound, and October feeders soared 2.60 to 216.87.
Hog futures turned mixed Tuesday morning. The quarterly Hogs & Pigs report was clearly bullish for the hog outlook and futures reacted accordingly. However, the nearby contracts failed at fresh highs, with the subsequent breakdown weighing heavily upon deferred futures as well. August hog futures plunged 2.22 cents to 130.60 cents/pound as the lunch hour loomed Tuesday, but December remained 1.05 cents higher at 99.65.