Corn is still feeling downward pressure in early Monday morning trading after last Friday's RFS report from the EPA; the ethanol numbers fell short of expectations. Corn prices still seem to be reacting to favorable weather forecasts pointing toward another record production year. Despite weather a little bit cooler than normal, recent rainfall, as well as anticipated warmer temperatures, bode well for this year's crop. July corn is down 1.0 cent to $3.505/bushel early Monday and December dipped 0.75 to $3.6725. Dollar Index also rose 0.38% to 87.61.
The soy complex moved mostly lower in weekend trading. The three-week strike by Argentine crush workers will reportedly end since it appears they've agreed to a pay hike. This eases concerns about export logistics and reduced South American shipments, thereby depressing beans and meal overnight. However, soyoil continued rallying this morning, presumably in response to last Friday's bullish RFS proposal by the EPA. July soybean futures sank 9.75 cents to $9.2425/bushel early Monday morning, while July soyoil climbed 0.27 cents to 33.60 cents/pound, and July meal sagged $3.2 to $302.4/ton.
Wheat prices traded mixed Sunday night, due in part to reports that Russian wheat prices have slipped in concert with global benchmarks, which in turn reminded traders that U.S. wheat remains uncompetitive on the global market. Talk of improving weather over the southern Plains also seemed to undercut winter wheat quotes, although the Minneapolis market rose modestly. July CBOT wheat futures sagged 0.75 cent to $4.7675/bushel shortly after sunrise Monday, and July KC wheat skidded 0.75 cents to $4.98/bushel, but July MWE wheat gained 1.25 cents to $5.32.
Huge wholesale losses undercut cattle futures Friday. The cattle market threatened to break out to the upside Thursday, but failed to do so. That may have set the stage for a sharp bearish reaction to Friday’s midsession beef news, which indicated major losses in cutout values. The late-day beef reports confirmed the midday losses, as well as afternoon reports of cash slippage seemingly bode ill for today’s CME opening. June live cattle futures ended Friday having sunk 1.17 to 152.32 cents/pound, while August cattle dove 1.47 to 151.27. Meanwhile, August feeder cattle futures plunged 2.0 cents to 222.95 cents/pound, and November feeders dropped 0.90 to 219.37.
Hog futures followed cattle lower. Pork quotes fell sharply Thursday afternoon, but that triggered only a modest response in early Friday trading. Conversely, the midday breakdown suffered by beef prices and the CME cattle reaction apparently spurred more aggressive hog selling. Midsession pork gains were apparently offset by slippage in the country hog markets. Friday afternoon spot action indicated the same, thereby suggesting a weak Monday morning opening June hog futures fell 0.77 cents to 83.82 cents/pound in late Friday trading, while December tumbled 0.87 to 69.22.
Cotton continues to build on its support from late last week. The recent upward price trend has seemingly been based primarily on the expectedly strong export sales numbers from Friday. Adding to the support is slow cotton sowing in Texas, the top producing state, and, possibly, the heat wave in India, the largest cotton producing country, which has killed nearly 2,200 people and threatens the crop. July cotton advanced 0.54 cents to 64.89 cents/pound in early Monday trading, and December futures rallied 0.35 to 64.99.