Corn futures struggled to avoid sustained losses in Tuesday trading. However, prices were traded lower at close as bearish sentiment was reinforced due to the ideal crop weather that is supportive for maintaining good crop conditions. USDA reported the corn condition ratings at 75% good to excellent. That was the highest rating for early July in 15 years. There were five deliveries posted against the July futures. September corn dove 2.25 cents to $3.9825/bushel, and December lost 2.00 cents to $4.0425.
The soybean futures fell for a seventh straight session Tuesday to their lowest level since February as buying interest dried up after USDA’s Crop Progress report. The nearby contracts were heavily undercut by the profit taking and long liquidation actions. The U.S. crop condition rating for soybeans were at 72% good to excellent, the highest rating in the season since 1994 and is 10 points above the ten-year average. The forecast maps suggested favorable weather in the Midwest for the next two weeks. August soybeans plunged 24.75 cents to $12.485/bushel, and November moved 9.25 cents lower to $11.1625. August soyoil was down 0.55 cents to 37.88 cents/pound, and August soymeal fell $6.8 to $401.9/ton.
The wheat markets ended the day on a mixed note. After sharp losses Monday that carried CBOT July wheat to a four year low for a nearby contract, prices attempted to stabilize and closed with little changes. However, KC wheat market was depressed by the winter wheat harvest progress. Harvest is now focused on Kansas, Nebraska and the eastern Midwest. 70% of all Kansas wheat has been harvested as of July 7, a large step ahead of a week ago at 40%. September CBOT wheat futures edged 0.5 cents down to $5.5625 bushel, while September KCBT wheat declined 5.5 cents to $6.66425, and September MWE futures descended 4.75 cents to $6.57.
Cattle futures were mostly lower on Tuesday. Futures weakness was led by the nearby August contract. A large commodity fund is rolling their long position ahead by selling August futures and buying October. The rolling process began Tuesday and will continue over the next four days. Last week’s holiday shortened week has translated into additional supply of market-ready cattle this week. The larger supply coupled with concern about consumer demand at these price levels has prompted some profit-taking in futures. Tuesday’s price action appeared to be a continuation of Monday’s pullback from the early highs. Trade is monitoring beef prices closely for signs of weakening demand, but midday beef prices were actually higher. The Choice cutout reached $250.03 per cwt, up $1.85. August cattle settled 1.43 cents lower to 153.52 cents/pound while December was 0.05 cents higher to 155.35 cents. Meanwhile, August feeder cattle closed 2.10 cents lower to 215.90 cents/pound.
Hog futures were mixed Tuesday morning. Firm cash prices gave a boost to the CME futures. Higher pork prices added additional support. Slaughter number picked up as prices are moving higher. However, the market was undermined by the lower beef values and poor financial market performance. August hog futures decreased 1.85 cents at 129.975 cents/pound and December rose 0.225 cents to 104.275 cents.