Corn futures settled mixed on Thursday. The market experienced much volatility as corn futures traded both sides today. The euro zone debt crisis continued to weigh down market prices. Front month contracts declined further as forecasts for rains over the U.S. Midwest this weekend will limit crop stress due to inadequate soil moisture levels. Traders concerns about lack of rain going into June helped to lift deferred contracts.
Soybean futures settled 22 to 33 cents lower on Thursday. Soybean futures tumbled as much needed rain moves across the U.S. Midwest and Southeast. Market prices could not bounce back as traders liquidated their long positions in the market amid investor concerns pertaining to the growing economic crisis in the EU. Demand for U.S. soybeans remains intact and should lend support to futures prices.
Wheat futures settled 8 to 11 cents lower on Thursday. Wheat harvest is underway in Kansas, with reports of good yields in parts of the state, adding pressure to market prices. Favorable weather in Russia and Australia eased concerns over global wheat supplies, which aided in the market decline. The economic crisis in the European Union continues to be a factor as investors are becoming more concerned about its possible affect on the global economy.
Cattle futures settled higher on Thursday. Cattle prices remained firm despite resistance from outside markets. The surge in boxed beef prices on Wednesday led the way to market recovery along with spillover support from the hog market. The discount to cash cattle prices supported cattle futures as well. Beef packer margins are positive and trade in the cash market is expected to be steady due to firm post Memorial Day demand.
Lean hog futures settled $1 to $2 higher on Thursday. Hog futures soared Thursday on short covering in the market. Steady cash prices and technical buying in the market added additional strength to prices. Wednesday’s firm pork cutout value provided strength to market prices as well. However, pressure from outside markets continues to be a concern for the market.