Wet, cool forecasts seemed to affect crop markets Monday
The threat of overnight frost may have boosted corn futures Sunday night. Forecasts for surprisingly cold temperatures and the threat of frost over the upper Midwest seemingly boosted corn futures somewhat in early Monday trading. The threat of damage seems small, so persistent soy weakness might drag the grains downward as well. December corn rose 1.0 cents to $4.60/bushel early Monday morning, while May added 0.5 cents to $4.80.
Rainy forecasts undercut the soy complex Monday morning. Although it’s arriving rather late, modest rains are now expected to cover the Corn Belt over the next two weeks. Given the size of the gains posted by the legume markets over the past six weeks, the drop is not terribly surprising. November soybeans fell 16.0 cents to $13.655/bushel in early Monday trading, while October soyoil slid 0.18 cents to 42.16 cents/pound, and October soymeal dipped $5.9 to $438.7/ton.
The wheat markets followed corn upward this morning. The weather forecast of frost potential during the next few days may have caused wheat futures to follow corn upward Sunday night. Canada’s large crop may be somewhat more vulnerable to damage, which may also be playing a role in the wheat rise. December CBOT wheat edged up 1.75 cents to $6.4325/bushel around dawn Monday, while December KCBT wheat gained 2.0 cents to $6.94, while December MGE futures advanced 1.25 cents to $7.07.
Cash news apparently boosted cattle futures as trading wrapped up last week. Weak prices in the wholesale and futures markets seemed to bode ill for the short-term outlook earlier in the week. However, late-week news that packers had paid steady-firm money for Great Plains cattle seemed quite encouraging. Friday’s CME gains almost surely reflected that. October cattle futures rallied 0.42 cents to 125.25 cents/pound at their Friday settlement, while December added 0.52 to 129.15. Meanwhile, October feeder cattle climbed 0.67 cents to 159.27 cents/pound, and January moved up 0.32 cents to 159.42.
The CME hog market also benefited from cash strength last Friday. Cash gains encouraged hog traders again last week, especially with midday Friday wholesale quotes rising significantly as well. However, the CME market posted a mixed close after nearby October futures made a run at Wednesday’s high. October hog futures closed 0.50 cents higher at 90.70 cents/pound Friday, but December slipped 0.02 cents to 87.25.
Cotton futures seemed to follow soybeans lower Sunday night. Although the latest forecasts are generally dry for U.S. cotton growing areas over the next week or so, it’s probably late enough in the season to where rainfall might damage the fiber in the boll. That might explain the concurrent slide posted at the start of this week’s trading. December cotton futures sagged 0.28 cents to 84.18 cents/pound just after sunrise Monday, while March slumped 0.06 to 84.10.