The grain markets traded mixed Monday as the slightly improved weather outlook and nervousness on Greece seemed to largely keep a lid on futures. Weekly export inspections for corn were 839,824 tonnes, according to the USDA, compared to 1.041 million tonnes last week. The 6 to 10 weather outlook is calling for below average rainfall and above average temps for much of the Midwest, though parts of Indiana and Ohio appear to have more rain in their forecast. Corn crop ratings, due out this afternoon, are expected to be 1-2% lower the 68% rating last week. The US Dollar Index is up .10 to 96.22. July corn futures fell 1.25 cents to $4.185/bushel at the close Monday, while December lost 2.25 cents to $4.35.
The soy complex weakened Monday after rallying on lower ending stocks last week. Profit taking and a more favorable weather outlook are presumably behind the resistance. The trade is expecting soybean crop ratings to be 1-2% lower from the 63% rating last week. USDA reported weekly export inspections for soybeans to be 197,441 tonnes, compared to 296,860 last week and 92,698 this time last year. Weather continues to be key as the focus remains on late planting success and, ultimately, acreage and yield potential. July soybeans fell 11.5 cents Monday to $10.3375/bushel, while July soyoil lost .72 cents to 32.64 cents/pound, and July meal lost $3 to $354.4/ton.
Wheat futures lifted on Monday after starting the day substantially lower. While the U.S. winter wheat harvest is likely to benefit from a drier outlook, attention has turned to spring wheat harvest as weather concerns persist. Canada continues to struggle with drought conditions parts of western Saskatchewan and eastern Alberta have gotten less than 40 percent of normal rainfall since April 1st. Weekly export inspections for wheat were reported to be 368,818 tonnes, compared to 360,592 last week and 481,921 this time last year. July CBOT wheat futures climbed 2.75 cents to $5.885/bushel Monday, while July KC wheat edged higher .25 cents to $5.7625/bushel, and July MWE lowered 10 cents to $5.9625.
Live cattle futures turned lower Monday, continuing the seasonal demand shift lower. Beef cutouts lowered last Thursday before the holiday with choice down 2.17 to 250.12 cents/pound and select down 1.21 to 248.05 cents/pound. It appears that futures have followed suite lower today and that traders could be holding out for buying opportunities ahead of the Labor Day expected uptick. August cattle futures lost .77 cents to 155.45 cents/pound Monday, while December futures fell .35 cents to 154.37. Meanwhile, August feeder cattle futures sank .62 cents to 216.82 cents/pound, and November feeders lost .45 cents to 212.82.
Lean hogs futures softened Monday, apparently correcting after last week’s rally in response to the Hogs & Pigs report. While the nearby futures months of Oct, Nov, and Dec all weakened, the deferred months strengthened, again reiterating the implied tightening of the farrowing supply reported by the USDA. The 40-day moving average is 79.29 cents/pound, suggesting nearby futures may be supportive, in the near future, particularly as we move toward the gearing-up of production for another holiday. August hog futures slid .30 cents to 76.07 cents/pound Monday, while December lost .62 cents to 63.15.