Favorable conditions are still weighing on the crop markets. Monday’s Crop Progress report indicated that corn growing conditions are still very good by historical standards, which matched expectations. Prospects for a bumper harvest and concurrent bean and wheat losses are weighing on corn prices again today. July corn slipped 4.0 cents to $4.405/bushel Tuesday morning, while December declined 4.5 to $4.38.
The soy complex is leading the way lower Tuesday morning. The Crop Progress report stated the soybean crop rating at 72% good-to-excellent, which is a record-high rating for the third week of June. That result rather obviously depressed bean and product futures in early action, although overnight palm gains in Asia supported oil. Old crop prices are also proving quite weak. July soybeans dove 15.75 cents to $14.09/bushel around midsession Tuesday, while July soyoil rose 0.02 cents to 40.70 cents/pound, and July soymeal tumbled $7.0 to $448.7/ton.
Traders cite harvest progress for as depressing the wheat markets. The Crop Progress also stated spring wheat conditions in relatively good shape, but weather related problems are growing. Wheat futures have fallen significantly despite those issues, with wire service sources citing the progress of the ongoing winter wheat harvest for exerting downward pressure on prices. July CBOT wheat futures fell 8.25 cents to $5.715/bushel shortly before midday Tuesday, while July KCBT wheat slid 5.75 cents to $7.0825, and July MWE futures lost 7.5 to $6.7775.
Cattle futures are reacting to fresh beef gains. CME cattle traders seemed to be anticipating continued beef strength as they pushed prices higher Monday. However, the big gains posted by the USDA yesterday afternoon probably exceeded expectations, which in turn would explain the big follow-through being seen this morning. August cattle jumped 2.17 cents to 149.10 cents/pound as lunchtime loomed Tuesday, while December surged 1.52 to 153.22. Meanwhile, August feeder cattle spiked 2.70 cents to 210.60 cents/pound and October soared 2.22 to 211.67.
Cash and wholesale strength are again supporting hog futures. The cash hog and wholesale pork markets seemingly resumed last week’s advance Monday, thereby seeming to point to even higher levels. Traders appeared to worry about the market’s historical tendency to peak in late June, but they obviously got past that issue as the morning passed. August hog futures rocketed up 2.82 cents to 131.80 by late Tuesday morning, while December climbed 0.87 cents to 92.82.
The expiring July contract is leading cotton futures lower. Bulls are bailing out of the expiring July contract enters its delivery period, so it is diving as a consequence. The deferred contracts are following it downward, which probably reflects the improvement in cotton condition ratings on the Crop Progress report. July cotton futures plunged 4.50 cents to 83.02 cents/pound by midsession Tuesday, while December cotton sank 0.84 to 76.84.