The grain markets firmed overnight after sliding Tuesday. U.S. stock futures were higher by 74 points this morning and the Dow lost 180 points yesterday on continued uncertainty about the global economy. Chinese stocks closed sharply lower Wednesday with the Shanghai Composite down 2.16% and the Shenzhen Composite down .82%. Near perfect dry harvest weather has helped with harvest progress and may add pressure, limiting near-term gains. The Sep 1 Grain Stocks quarterly report will be release next Wednesday, Sep 30. December corn futures gained 3.5 cents at $3.84/bushel early Wednesday, while March edged 3.25 cents higher to $3.955.
Soybean futures rebounded early Wednesday morning after falling Tuesday on improved crop ratings. The U.S. Soybean Export Council has reported that buyers from China have agreed to purchase an amount of U.S. soy that will be revealed at a signing ceremony in Des Moines from 12:15 p.m. to 1 p.m.CDT on Thursday. Palm oil hits 2.5 month high on weak ringgit and El Nino worries. Lingering concerns in the financial markets combined with optimal harvest weather may add pressure, despite soybean futures already near 6.5 year lows. November futures were 6.75 cents lower at$8.685/bushel early Wednesday morning, while October soyoil gained .20 cents to 26.33 cents/pound and October meal moved higher $2.1 to $307/ton.
The wheat complex was lower overnight as the macro markets are weighing commodities to start the week. STATS Canada will issue their all-wheat stocks report Thursday with trade estimates falling to 6.5 million tonnes, down 37% from a year ago. The trade awaits the release of export inspections data released mid-morning Monday as well the September WASDE due out a week from this Friday. September CBOT wheat futures lost 3 cents to $4.74/bushel early Monday, while Sep KC wheat fell 1.25 cents to $4.565/bushel, and September MWE dropped 0.5 cents to $4.90.
Live cattle future weakened Tuesday, erasing Monday’s gains. While high cattle weights have driven cattle lower recently, much of Tuesday’s action came from a sharply higher dollar and weakness in the equities markets. Cattle and calves on feed inventory was up 3% over a year ago according to the report last Friday afternoon. Feedlot placements were 5% lower than 2014, the lowest for August on record, since the series began in 1996. August marketings were also the lowest since the series, down 6%. Box beef values were sharply lower with choice down .76 to 225.54 and select up .89 to 220.15. October cattle were .92 cents/pound higher at 136.22 Tuesday, while December cattle lost 1.00 cents to 138.75. October feeder cattle fell 0.17 cents to 186.87 cents/pound at the close Monday, while January feeders moved .97 higher to 179.25.
Lean hogs lost steam Tuesday on broader weakness in the Financials and ahead of this Friday’s Hogs & Pigs report due out at 2:00 p.m. CDT. Hog slaughter so far this week was at 846,000 head, compared to 860,000 last week and 827,000 this time last year . The lean hog index was higher by .11% as cash values are now trading at a slight premium to the October futures contract. Cash hogs were .04 cents lower to 66.90. The average pork packer margin has been higher this week, compared to last Friday, but down from a week ago. October hog futures lost 0.57 cents to 71.00 cents/pound Tuesday at the close, while Dec hogs were 0.15 higher to 64.75.
Cotton futures began the week higher Monday despite Chinese stocks closing lower, perhaps on month-end positioning. The tighter than expected balance sheet for cotton and the drop in the condition rating have given cotton bulls something to talk about as of late but world market problems are now the driver. While the global scene for cotton is largely still plagued by oversupply, the recent bullish data appears to be giving way to world economic and currency struggles, particularly related to Chinese demand fears. December cotton futures lost .13 cents to 63.13 cents/pound Friday, while Mar rose 0.17 cents to 62.85.