Grain markets are lower early Wednesday morning as the trade now contemplates chances of robust numbers in next Tuesday’s acreage/stocks report. Corn has backed off near 8-week highs. Weather forecast, though drier recently, still showing above average rainfall in the 6-10 day outlook, particularly in the eastern Midwest. The US Dollar index is down .16 to 95.19. July corn futures fell 4.25 cents to $3.6325/bushel early morning Wednesday, while December gained 3.5 cents to $3.7775.
The soy complex extended its pullback this morning after ending lower yesterday. Caution seems to be the theme as traders anticipate the potential market moving acreage report out next Tuesday. Sellers are presumably taking advantage of price levels near 7-week highs. While new crop beans tested new lows of 8.95 last week, nearby futures have been flirting with $10 resistance level. Weather a factor as MO and KS struggle with an estimated 5 million soybean acres left to plant. July soybeans lowered 7.25 cents to $9.80/bushel at dawn Wednesday, while July soyoil gained 0.29 cents to 33.11 cents/pound, and July meal fell $3.1 to $328.8/ton.
Wheat futures also fell overnight in contrast to large gains yesterday. Analysts continue to eye winter wheat harvest conditions, particularly with disease in Kansas, as well the dryness in Europe and the cooler weather concerns in Canada. July CBOT wheat futures slid 3.5 cents to $5.18/bushel early Wednesday morning, while July KC wheat dropped 1.75 cents to $5.285/bushel, and July MWE lost 2.75 cents to $5.67.
Live cattle futures were mixed- lower Tuesday. Tension between the bulls and bears persist as the bulls look to positive wholesale prices and packer margins and bears focus on lower slaughter rates and market ready number being high. August cattle futures rose .07 cents to 151.97 cents/pound at the close Tuesday, while December futures fell .15 cents to 155.72. Meanwhile, August feeder cattle futures slid .62 cents to 225.20 cents/pound, and November feeders lost .67 cents to 219.95.
Lean hog futures were higher Tuesday amidst a sustained down-trend since mid-May’s high of 85.25 cents/pound . Hog retailers also facing tough competition from poultry at the counter. Friday, the USDA will release the Quarterly hogs and pigs report at 2pm. Markets have continued to adjust to futures being oversold. Current prices are still well below the 40-day moving average of 81.56. August hog futures ended Tuesday up .07 cents to 72.42 cents/pound, while December gained .42 cents to 61.15.
ICE cotton futures continued lower overnight. The lower trend might suggest the trade is more confident with the US production numbers being consistent with expectation as plantings, especially in Texas, improve. The July cotton futures backed off 0.92 cents to 62.66 cents/pound in early morning trading Wednesday, while December lost 0.26 to 64.29.