Although they posted moderate gains through most of the session on Friday, corn futures were under pressure on concern about weakening economic indicators for Japan, Europe and China Monday morning. However, firm cash prices limited further losses. Weekly corn export inspections were lower than trade expectations. Private exporters sold 116,000 tonnes of US sorghum to unknown destinations according to USDA’s reporting system. December corn futures lost 3.75 cent to $3.69/bushel around midsession Monday, while May was down 3 cents to $3.95.
Soybeans are starting the week with a negative tone Monday. We still remember that futures posted impressive gains last Friday at the close time. However, soybeans proved vulnerable as rains for South America, particularly Brazil, are cited as a negative, along with the strong U.S. dollar. However, strong export demand curbed the further losses. January soybean futures fell 10.5 cents to $10.285/bushel late early Monday morning, while December meal skidded $2.9 to $375.5/ton. But December soyoil added 0.20 cents to 32.89cents/pound, but
Wheat futures were mixed Monday morning. Weakness in corn and soybean markets probably added spillover pressure. USDA’s current forecast on a very strong dollar that hurts U.S. competitiveness. But on the positive side for prices, weekly wheat export inspections far exceeded the trade estimate. In addition, there is concern about potential for winterkill in parts of the U.S. Plains, S. Russia and Ukraine. December CBOT wheat dipped 0.5 cents to $5.4675/bushel just before lunchtime Monday, while December KC wheat inched 2.00 cents higher to $6.06/bushel, whereas December MWE wheat declined 0.5 cents to $5.8275.
Cattle futures were mostly steady to slightly lower. They closed firm Friday on surprisingly brisk demand given very high retail prices and the holiday season that typically sees a slump as consumers prepare Thanksgiving turkey instead. But the latest Cattle on Feed report may give market bulls pause as numbers came in stronger than anticipated in placements on feed and October marketings a little lighter than expected which leads to worry numbers might be backing up in feedlots. January feeder cattle futures fell 0.275 cents to 236.075 cents/pound, and March feeders lost 0.575 to 233.875.
Futures gathered buying interest in light holiday trading ahead of turkey day on Thursday. Although slaughter data has been consistently lighter than what would have been anticipated based on most recent Hogs & Pigs Report data showing numbers only 2% below a year ago, market was underpinned by the firm cash values. December hog futures surged 1.375 cents to 90.025 cents/pound late Monday morning, and April hogs added 0.675 to 93.625.
Though it closed strong Friday, it suffered another decline for the week. This market continues to struggle for the slightest glimmers of optimism for prices. A mainstay has been brisk export sales running well ahead of the pace needed to warrant USDA’s current export forecast, but the lead shrinking in recent weeks and blamed on a very strong U.S. dollar. Another glimmer occurred last week when China reported its 2014 cotton acreage was actually down nearly 16%, more than twice the decline reported all season. But unless 2015 global acreage declines and/or there are weather problems, the enormous global cotton surplus buries meaningful rally potential. December cotton retreated 0.69 cents to 59.07 cents/lb, while March futures moved down 0.96 cents to 58.56.