It appears that corn futures, along with beans and wheat, are trying to come back from their oversold conditions, as the grain and oilseed markets lifted overnight.  The corn crop rating was reported to be 70% good to excellent, holding steady from last week and the 6 to 10 day weather forecast still shows lack of extreme heat of excessive rains.  U.S. Dollar index is lower by .22% to 97.282 and the DJIA lost 91 points at the close Monday.  September corn futures advanced 3.75 cents to $3.7025/bushel early morning Tuesday, while December lifted 3.25 cents to $3.7975.    

The soy complex is firmer early Monday seeming to start a turnaround from the steady deterioration since after the high for the nearby contract hit $10.44/bushel in early July. The soybean crop rating increase by 1% from last week to 63% good to excellent. Ukraine’s Ag Ministry reported that they are forecasting a 5% increase in their soybean production to 4.1 million tonnes this year in order to help supply China.  September soybeans gained 7.75 cents to $9.5275/bushel just after dawn Tuesday, while September soyoil lifted 0.01 cents to 29.99 cents/pound and September meal rose $3.5 to $339.8/ton.   

Wheat futures moved higher in the overnight session despite disappointing export inspections reported yesterday.  The USDA reported the spring wheat crop to be 8% harvested vs the 11% five-year average and 2% last week and the spring wheat crop rating was reported at  70% good to excellent, compared to  71% last week and 70% last year.  Winter wheat harvest is nearly complete at 93% harvested, compared to the 85% five-year average and 85%% last week.  September CBOT wheat futures fell 0.25 cents to $4.99/bushel late Monday, while Sep KC wheat dropped 1.5 cents to $4.9075/bushel, and September MWE lost 6.5 cents $5.1525.  

Like seasonal clockwork, live cattle prices surged Monday on the late-summer pre-Labor Day demand shift higher.  It appears nearby cattle bottomed on July 27 at 143, reversing a downward trend that began on June 11. The 100-day moving average still sits 7 cents higher than nearby cattle suggesting there is plenty of room for seasonal upside.  October live cattle gained 2.2 cents to 148.10 cents/pound at the close Monday, while February futures rose 1.70 cents to 149.20.  Meanwhile, September feeder cattle futures gained 3.22 cents to 210.82 cents/pound, while November feeders lifted 3.07 to 207.30.  

Almost in tandem with live cattle, lean hogs made significant gains Monday as the first week of August denotes what is traditionally the time Labor Day retail industry buying starts to kick in to gear.  Back-to-school, college football tailgates, and the last BBQ party push have retailers increasing buying and packers adjusting inventories accordingly.  Pork prices outperformed beef and chicken in July suggesting fall demand may be better than expected.  The June Hogs and Pigs report implied the Q4 hog slaughter will run 7-8% over a year ago. The nearby contract has risen steadily in recent weeks after bottoming on July 13.  October hog futures closed 1.67 cents higher at 65.32 cents/pound Friday, while February firmed 1.07 cents to 67.97.

The cotton market fell again early Tuesday after slipping on Monday and is lower presumably on short covering ahead of the crop progress report out today as well the fund positioning ahead of the Aug 12 WASDE.  The cotton crop rating was reported by the USDA to be 57% good to excellent, compared to 57% last week and 53% last year, suggesting the crop is doing remarkably well, thereby adding to the supply issues and adding resistance to futures.  December cotton futures lost .29 cents to 63.71 cents/pound early Tuesday, while May lost 0.56 cents to 63.67.