Weather and wheat are seemed to depress corn futures Sunday night. Traders suspect that last week’s planting window greatly accelerated corn seedings ahead of likely rain this week. The implied increase in harvest prospects, along with weakness spilling over from wheat markets probably caused the poor start to this week’s corn trading. July corn dipped -3.0 cents to $5.045/bushel early Monday morning, while December lost 2.75 cents to $4.96.
The soy complex began the week on a mixed note. Last Friday’s WASDE report implied persistent old-crop supply tightness, which has subsequently supported those contracts. The new crop situation promises to be more liquid, so deferred futures have dipped. Meal futures seem to be responding to the latter influence, whereas weekend Asian palm strength appeared to boost oil futures. July soybeans edged up 1.0 cents to $14.88/bushel to start the week, while July soyoil climbed 0.54 to 41.72 cents/pound, but July soymeal slid $1.5 to $485.8/ton.
Big new-crop prospects seem to be weighing on the wheat markets. Although the Black Sea situation seems to be deteriorating, the wheat markets fell rather sharply Sunday night. Wire service sources blamed the bearish nature of last Friday’s WASDE report, since implied global supplies will likely be quite liquid in the 2014/15 crop year. July CBOT wheat futures dropped 12.0 cents to $7.105/bushel in early Monday action, while July KCBT wheat futures tumbled 10.25 cents to $8.185, and July MWE futures fell 10.5 to $7.8475.
Talk of steady cash prices seemed to boost cattle futures Friday afternoon. CME futures fell Thursday night after big beef losses lowered expectations for the likely outcome of weekly cash trading. However, futures turned higher in the morning and kept rising into the close. That probably reflected growing talk of steady-firm country prices. Indeed strong Friday evening cash quotes probably signal a strong opening today. June cattle bounced 0.12 cents to 138.05 cents/pound at their Friday settlement, while December advanced 0.50 cents to 144.77. Meanwhile, August feeder cattle jumped 1.10 cents to 191.37 cents/pound, and October surged 1.02 cents to 192.05.
Weak cash prices weighed on hog futures last Friday. CME hog traders are hoping for a seasonal rebound in cash and wholesale prices during the days and weeks ahead. General stability last Thursday encouraged those views. However, cash hog prices were called sharply lower around midsession Friday, thereby sparking increased Chicago selling. That seems likely to persist today. June hog futures ended the week by creeping up 0.02 cents to 120.17 cents/pound Friday, while December tumbled 0.30 cents to 94.07.
Cotton futures began the week testing technical support. Last Friday’s WASDE report seemed generally bearish for the cotton outlook and left the most-active contracts resting on technical support associated with important moving averages. Those contracts barely budged Sunday night, which implies the market is beginning this week at a pivotal point. July cotton slipped 0.05 cents to 92.31 cents/pound soon after sunrise (EDT) Monday, while December cotton gained 0.05 to 83.76.