The grain markets were lower early Tuesday, pressured by steady crop condition ratings. Headwinds also came from lower equities overnight with the S&P mini down .27% and the DJ mini down .20. The corn condition rating came in at 68%, steady from last week, marking the sixth week in a row at the value. Corn harvest was reported at 27% complete, compared to 18% last week and the 32% five-year average. Corn export inspections disappointed at 470,000 tonnes, compared to the expectation of 750,000-900,000. December corn futures edged lower 0.25 cents to $3.9325/bushel early Tuesday morning, while March lost 0.25 cents to $4.035.
Soybean futures fell in the overnight session, driven primarily by the 2 point rise in the soybean crop condition rating reported by the USDA Monday afternoon. The soybean good to excellent rating jumped to 64% from 62% last week and compared to the 73% last year. Soybean harvest came in at 42% complete, compared to the 32% five-year average and 21% last year. At 7:30 a.m. CDT this morning, the Foreign Ag Service GAT system will release monthly export data that the trade will follow closely. Also, the World Supply/Demand report is due out 11:00 a.am. Friday where the focus will be the new acreage and yield numbers. Export inspections shattered expectations Monday at 1.123 million tonnes, compared to the estimate of 450,000-600,000 tonnes. November soybeans dropped 3 cents to $8.8125/bushel early Tuesday morning, while December soyoil lost 0.25 cents to 28.32 cents/pound and December meal slid $.1 to $303.7/ton.
Wheat futures were mixed early Tuesday with ample global supply apply and lackluster exports causing resistance while growing concerns of dryness in the Black Sea region and Australia are providing some near-term support. Export inspections for wheat were reported Monday at 557,000 million tonnes, compared to the expectation of 450,000-650,000 tonnes. Winter wheat planting was reported at 49% versus 31% last week and the five-year average of 51%. December CBOT wheat futures were 1.25 cents lower at $5.1425/bushel early morning Tuesday, while Dec KC wheat inched 0.25 cents higher to $5.0225, and December MWE advanced 1 cent to $5.3175.
Live cattle futures continued their precipitous downward fall on Monday driven by cash values that have yet to bottom. On a nearby continuous basis, cattle futures have dropped 40% since their Oct 2014 high of 171.97 cents/pound with the steepest trend lower occurring in the last 3 weeks where futures have dropped 13%. Futures have dropped 15 of the last 19 sessions. Cattle slaughter fell by 3.9% last week compared to a year ago as the cattle market continues to work through inventory impacted by record-high weights. December cattle dropped 1.55 cents to 130.22 cent/pound Monday, while February cattle slid 1.935 cents to 132.67 cents/pound. November feeder cattle moved 1.37 cents lower to 173.52 cents/pound, while January feeders lost 1.35 cents to 168.30 cents/pound.
December CME hogs fell Monday, erasing Friday’s gains, closing just 1.3 cents below the 200-day moving average and nearly two cents above the 50-day moving average. Forward month contracts, however, surged ahead of the early 2016 demand uptick. Pork production last week was 7.4% greater than a year ago, suggesting demand continues to be firm even as the hog sector moves closer to the fall/winter time of year when supply is at seasonal highs. Cash hogs also firmed as the lean hog index climbed .56% to 73.06. December hog futures lost 0.70 cents to 64.72 cents/poundMonday, while April hogs climbed 0.52 to 72.70.
Cotton futures continued to strengthen overnight, rising for the second day, powered by two point drop in the cotton good-to-excellent condition rating. Last Thursday, it was reported that the International Cotton Advisory Council had boosted its forecast of 2015/16 global cotton stocks by 200,000 tonnes to 20.62 million, adding to the overarching bearish supply outlook for cotton. ICE cotton fell last week due in part to Hurricane Joaquin moving away from the East Coast, easing fears that the rains associated with the storm could harm yields and quality in cotton-producing states. December cotton futures gained .20 cents to 62.07 cents/pound early Tuesday morning, while May cotton climbed 0.04 cents to 62.19.