Grain traders seemed to change their minds about recent rains Monday morning. The crop markets surged Sunday night, with traders citing worries about excessive rainfall damaging growing crops. Those fears were seemingly rejected this morning, with prices turning decidedly lower. July corn tumbled 7.75 cents to $4.455/bushel late Monday morning, while December sank 7.75 to $4.4425.
Beans and meal also backed away from early highs. This morning traders seemed to conclude that Sunday night concerns about excessive rainfall and crop damage in the western Corn Belt were overblown, which apparently triggered widespread selling. The weak bean result on the Export Inspections report may have triggered sales as well. Asian palm strength offered persistent support for soyoil values. July soybeans slid 0.5 cent to $14.1525/bushel as lunchtime loomed Monday, while July soyoil climbed 0.44 cents to 40.57 cents/pound, and July soymeal dropped $4.6 to $454.6/ton.
The wheat markets turned lower as well. The possibility that ongoing rains are damaging winter wheat and/or causing spring wheat problems seems greater than that for corn and beans. Nevertheless, wheat futures also turned downward in Monday morning action. The strong result on the weekly Export Inspections report seemingly offered little support. July CBOT wheat futures fell 2.75 cents to $5.825/bushel around midsession Monday, while July KCBT wheat skidded 1.0 cent to $7.1975, and July MWE futures slumped 5.5 to $6.85.
Cattle traders may be anticipating continued beef strength. Stunning wholesale gains likely played a major role in boosting cash and futures prices for cattle last week. Traders are probably expecting more of the same during the days just ahead, although deferred gains apparently reflect longer-term bullishness. August cattle rallied 0.57 cents to 146.90 cents/pound in late Monday morning action, while December jumped 1.12 to 151.62. Meanwhile, August feeder cattle advanced 0.75 cents to 207.62 cents/pound and October gained 0.70 to 209.02.
Last week's poor close may be weighing on hog futures. The cash hog and wholesale pork markets seem to be performing very well at this point. However, after rallying early last week, nearby hog futures posted a disappointing performance late last week. That may explain today's early weakness in the face of continued cash/wholesale support. August hog futures sagged 0.35 cents to 128.80 just before the lunch-hour Monday, while December lost 0.32 cents to 96.22.