Grains were mostly lower Thursday, with the exception of the soy complex. The weekly corn export sales for old crop were 627,185 tonnes compared to the 400,000-600,000 tonnes expected, according to the USDA. New crop corn export sales were reported at 200,374 tonnes compared to the estimated 50,000-200,000 tonnes. Corn has lost a bit of the recent weather premium that seemed to be pulled higher in response to soybean planting fears. The Dow was up 200 points and the dollar turned weaker after the Fed’s accommodative statement yesterday. July corn futures fell 1.25 cents to $3.58/bushel at the close Thursday, and December dropped 1.75 cents to $3.7325.
Soybeans advanced Thursday as remnants of Tropical Storm Bill could still jeopardize plantings. Above normal rains combined with below normal temps in the forecast from the southern plains to the Ohio River Valley appears to be forefront on the minds of traders. Export soybean sales of 132,931 tonnes old crop beans was lackluster, however sales of 532,042 tonnes of new crop beans may have added support. July soybean futures gained 8.75 cents to $9.7775/bushel at the closing session Thursday, while July soyoil fell .60 cents to 32.25 cents/pound, and July meal gained $2.9 to $326.6/ton.
Wheat futures weakened Thursday. Weekly export expectations for wheat were 200,000-400,000 tonnes and were reported to be 315,691 tonnes for the 15/16 crop year. This means that the U.S. has sold 20% of the USDA’s goals for the year, compared to the 24% 5-year average . The USDA numbers will be released at 730 CDT this morning. July CBOT wheat futures slipped 3.25 cents to $4.88/bushel Thursday at the close, while July KC wheat is down 8 cents to $4.975/bushel, and July MWE dropped 8 cents to $5.425.
CME cattle futures lowered on Wednesday despite recent firmness in beef cutouts. Livestock futures seem to be facing opposing factors; on one hand, some are buying due to discount to cash whereas others may be sellers in anticipation of the demand slow- down after the July 4th holiday. August cattle futures fell .40 cents to 150.82 cents/pound at the close Wednesday, while December futures lost 0.82 cents to 153.97. Meanwhile, August feeder cattle futures dropped .10 cents to 224.75 cents/pound, and November feeders lifted .02 cents to 218.47.
The hog market saw a bounce Wednesday after consolidating the past few days in response to lean hogs futures being vastly oversold. The trade continues to struggle with oversupply while at the same time facing the seasonal shift to lower demand after the 4th of July. Therefore, we could see continued downward pressure Thursday, yet in the longer run, some analysts are predicting a possible move upward to $80-81. August hog futures gained 0.95 cents to 76.50 cents/pound at Wednesday’s ending session, while December rallied 1.20 to 64.00.