The grain markets are firmer early morning Tuesday on follow through buying in response to weaker than expected crop conditions. Yesterday afternoons’ crop progress report stated corn ratings fell 2% to 71% good to excellent compared to 74% last year and compared to the 74% average. July corn futures are up 1.75 cents to $3.6175/bushel early morning Tuesday, while December gained 2 cents to $3.755.
The soy complex is trading mixed early morning after trading sharply higher yesterday in response to weather’s impact. Soybean planting advanced only 3% to 90% compared to the 95% average; trade was expecting 92%. Kansas soybeans advanced from 16% to 73% complete, however, that is 18% below average. Missouri soybeans moved to 51% which is still 37% behind average. Soybean ratings dropped 2% to 65% good to excellent compared to 72% last year and the 65% average. July soybean are up 2 cents to $9.915/bushel at sunrise Tuesday, while July soyoil dropped 0.12 cents to 32.80 cents/pound, and July meal fell $1.1 to $332.5/ton.
Wheat futures are stronger in the overnight session. Winter wheat harvest advanced only 8% to 19% complete compared to the 31% average. The trade was expecting 21%. Spring wheat conditions moved 1% higher to 71% good to excellent compared to 71% last year. Reports have emerged that a fungal disease, head scab, is quickly spreading in wheat fields in central Kansas. July CBOT wheat futures jumped 3.5 cents to $5.0475/bushel at dawn Tuesday morning, while July KC wheat climbed 4.5 cents to $5.165/bushel, and July MWE advanced 5.25 cents to $5.5825.
Live cattle futures may continue firmer Tuesday after strength Monday perhaps from ideas the seasonal decline may be near its end. August cattle futures surged 1.22 cents to 151.90 cents/pound as the Chicago pit session ended Monday, while December futures gained 1.32 cents to 155.85. Meanwhile, August feeder cattle futures spiked 2.35 cents to 225.77 cents/pound, and November feeders rocketed up 2.62 cents to 220.52.
Lean hog futures could face continued resistance today after Monday’s losses. Ongoing cash weakness and expectations for a massive annual increase in summer hog supplies depressed hog futures late last week. Moreover, Friday’s technical breakdown implied much more of the same during the days just ahead. However, futures seemed to stabilize at lower levels after the opening, which probably reflected relatively modest cash weakness and higher pork quotes at midday. August hog futures ended Monday having dived 1.45 cents to 72.37 cents/pound, while December tumbled 0.92to 60.72.
ICE cotton futures are weaker Tuesday morning after firming yesterday. July futures touched over 64 cents/pound yesterday, still shy of the 64.86 forty-day moving average. Prices continue looking for direction while considering the global supply glut and the slow U.S. planting season due to rainfall. July cotton futures backed off 0.28 cents to 63.75cents/pound in early morning trading Monday, while December lost 0.26 to 64.54.