Good growing weather pressuring new-crop grain prices

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Corn futures were down again on Monday. After trading higher early, farmer selling and weaker cash prices sparked a sharp decline in July futures despite solid weekly export inspections at 14.8 million bushels. While there were no deliveries against July futures, now that they are in delivery, long liquidation seems to be contributing to the weakness. This contrasts with recent price action with July holding firm relative to deferred contracts. December was also under pressure on favorable weather and expectations for improved condition ratings. September corn futures closed 15.75 cents lower to $5.315/bushel while the December contract settled 9.75 cents lower to $5.0125.

The soybean complex presented a mixed note on Monday. Recent favorable weather condition promoted a beneficial environment for plant development with high soil moisture and sufficient sunshine. Nearby futures were still supported by the tightness of supplies. August soybean futures jumped 5.25 cents up to $14.3625/bushel. August soyoil ascended 0.53 cents to 46.82 cents/pound, but August soybean meal descended $2.00 to $432.9/ton. November soybean prices dropped 8.75 cents to $12.4325 /bushel.

Wheat also proved vulnerable and dropped below the low end of its 20-day Bollinger range during Monday session. USDA weekly export inspection was 26.42 million bushels, up from the previous week at 14.754 million. However, the International Grains council forecast on 2013/14 global wheat up by 1 million tonnes possibly turned out to be a bearish signal to the market. This afternoon’s weekly crop condition report will bring additional news to the traders. September CBOT wheat lost 2.75 cents to $6.55/bushel, while September MGE wheat futures sank 3.50 cents to $7.715/bushel, while September KCBT wheat increased 0.25 cents to $6.9075/ bushel.

Cattle futures were higher on Monday, bouncing back after a lower start. Futures garnered strength from positive technical signals while awaiting news regarding beef demand through the July 4th holiday. Cash cattle were mostly steady last week at $120 per cwt. The August contract is holding just below last week’s high at $1.2312. August cattle were .15 cents higher to 122.17 cents/pound. October closed .37 cents higher to $1.2612.

Hogs futures gave back early gains and closed lower on Monday. Although the hog futures markets were gaining in the morning, the downturn of grain markets undercut the bulls. The demand turned out to be steady before the holiday closure due to the bought ahead of preparation from packers. August hog futures dipped 0.45 cents to 97.00 cents/pound Monday, while the December contract declined 0.175 cent to 82.475 cents/pound.



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