The Export Inspections data encouraged corn selling. Traders cited forecasts for benign harvest weather for Sunday night grain and soy losses. This morning's USDA Export Inspections report probably spurred selling as well, since it stated the corn figure well below forecasts. December corn futures sank 3.25 cents to $3.4475/bushel late Monday morning, while May sagged 3.5 to $3.665.
Beans and meal stabilized Monday morning. The dryer weather experienced over the weekend and the prospect of much more of the same during the days ahead clearly depressed the soy complex to start the week. However, the Export Inspections report stated the soybean figure well above the predicted range, which brought beans and meal back from their early lows. Oil remained under pressure. November soybean futures fell 11.75 cents to $9.40/bushel around midsession Monday, while December soyoil tumbled 0.31 cents to 31.71 cents/pound, and December soymeal slid $2.9 to $327.6.
Weather forecasts may also be undermining the wheat markets. Traders worry that depressed corn prices will reduce domestic wheat feeding, which has probably acted as a drag on golden grain prices for weeks. A supportive Export Inspections result probably helped bulls this morning, but wire service sources also cited predicted dryness in the southern Plains as likely helping the industry complete winter wheat plantings. December CBOT wheat dipped 3.75 cents to $5.1225/bushel just before lunchtime Monday, while December KC wheat slumped 2.25 cents to $5.995/bushel, and December MWE wheat slid 3.75 to $5.6675.
Talk of strong packer demand is boosting the cattle sector. Although traders are probably expecting continued beef weakness through the balance of October, CME futures leapt upward this morning. Wire service sources argued that beef packers paid up for cattle last week and are still looking for animals this week, thereby sparking the Chicago buying. December live cattle futures soared 2.75 cents at 167.80 cents/pound by late Monday morning, while April futures jumped 2.45 to 164.50. Meanwhile, November feeder cattle futures leapt 2.62 cents to 236.77 cents/pound and January feeders vaulted 2.62 cents to 203.75.
A big index drop is weighing on hog futures this morning. Cash hog and pork prices have come under increasing pressure lately, as exemplified by the preliminary Friday quote for the CME index; that 1.43-cent drop is one of the largest of the year. However, traders apparently suspect the outlook is better than implied by recent market action, thereby limiting losses and boosting mid-2015 futures. December hog futures declined 0.80 cents to 89.77 cents/pound late Monday morning action, while April hogs rose 0.10 to 87.60.
Chinese news is seemingly dragging cotton prices downward. A weekend announcement of a sizeable cutback in Chinese cotton buying last month seems to be depressing December cotton futures. The deferred contracts are proving relatively firm, which may reflect technical buying around their short-term moving averages. December cotton futures dropped 0. 64 cents to 62.36 cents/pound shortly before noon (EDT) Monday, while March futures skidded 0.07 cents to 61.66.