The grain markets are mixed early Monday morning as wet fields keep confidence in check. More private estimates are expected this week ahead of the June 30 USDA acreage report. Rainfall over the weekend was as expected and the 6-10 outlook now suggests continued above average moisture alongside below average temps. Even so, corn futures remains under pressure as investors seem to think this weather is still mostly favorable for its growth. The US Dollar index is higher. July corn futures fell 1.75 cents to $3.515/bushel early Monday morning, and December dropped 2.5 cents to $3.6625.
The soy complex is higher to start this week after another soggy weekend and with more wet weather in the forecast. Last week soybean planting progress was reported to be 87% complete, compared to the 90% average. This afternoon a new planning progress report will be released and the trade is expecting bean planting to be at 90-91%. As for conditions, some are looking for 1-2% drop due to damage from heavy rains. July soybean futures rose 4.75 cents to $9.76/bushel after sunrise Monday, while July soyoil gained .01 cents to 32.56 cents/pound, and July meal raised $2.1 to $325.2/ton.
Wheat futures advanced early Monday presumably from questions about the impact of heavy rains on the winter wheat harvest. Weekly export numbers are expected to be bearish again. West Kansas field reports suggest some evidence of freeze damage from the Spring. July CBOT wheat futures rose 2.25 cents to $4.91/bushel at dawn Monday morning, while July KC wheat lifted 2.25 cents to $5.0575/bushel, and July MWE gained 1.25 cents to $5.445.
CME cattle lifted Friday after correcting the last few days and could be neutral-lower Monday. Analysts suggest that last Friday’s Cattle-on-feed report came in neutral for nearby contracts and bullish for the deferred. May placements, according to the report, found young cattle going to feedlots at 89.8% the lowest placement since May 1996. August cattle futures rose 1.57 cent to 150.92 cents/pound at the close Friday, while December futures lost 1.37 cents to 154.60. Meanwhile, August feeder cattle futures gained 1.77 cents to 223.65 cents/pound, and November feeders climbed 1.15 cents to 218.00.
The hog market continued to fall Friday to round off a week of consolidation. Monday may bring another round of lower bids since demand has seemed to disappoint and supply appears too high. The trade continues to struggle with oversupply while at the same time facing theseasonal shift to lower demand after the upcoming Independence Day holiday. The CME lean hog index lost .46 cents to 80.11 cents/pound. August hog futures slid 2.25 cents to 73.75 cents/pound at the close Friday, while December fell 2.02 to 61.50.
Cotton trading is mixed to start the week. Little fresh news in the cotton world though sentiment appears to remain bearish given world supply and slow planting. July cotton futures lost .05 cents to 63.27 cents/pound in pre-open trading Monday, while December climbed .06 to 63.96.