The grain markets were mostly lower overnight, with corn down near 4 cents despite stronger than expected export inspections Monday. The corn condition rating dropped 1% to 68% good-to-excellent, compared to 69% last week and 74% a year ago. The weather outlook continues to lack extremes that could hinder yields, with the exception of the Eastern Corn Belt which needs rain. China’s stock market closed down 1.3% Tuesday after manufacturing (PMI) data underscored weakness in growth. The DJIA lost 115 points Monday at the close, and the Dollar is .3% lower. September corn futures were 3.75 cents lower to $3.60/bushel early Tuesday morning, while December was 2.5 cents lower to $3.7275.
Continued weakness in financial markets and strong crop conditions has the oilseed complex lower Tuesday morning after rising the last three sessions. The soybean crop condition rating held steady from last week at 63% good-to-excellent. The start of this new month denotes the first official day of the new-crop 2015/16 marketing year for corn and beans. Monday, the USDA reported 125,000 tonnes of soybeans to an unknown destination. September futures were 3.25 cents lower to $8.9425/bushel early Tuesday, while September soyoil lost .34 cents to 27.58 cents/pound and September meal lost $0.7 to $320.20/ton.
The wheat complex was lower overnight as the macro markets are weighing commodities to start the week. STATS Canada will issue their all-wheat stocks report Thursday with trade estimates falling to 6.5 million tonnes, down 37% from a year ago. The trade awaits the release of export inspections data released mid-morning Monday as well the September WASDE due out a week from this Friday. September CBOT wheat futures lost 3 cents to $4.74/bushel early Monday, while Sep KC wheat fell 1.25 cents to $4.565/bushel, and September MWE dropped 0.5 cents to $4.90.
CME hogs futures settled higher Monday after sliding Friday. Despite the bounce, cash hogs were down 2.84 last week while cash pork was down 3.15 making it apparent the market is entering a seasonal transition to lower demand and higher supply. As Labor day buying slows and BLT season comes to an end, the hog supply traditionally shifts higher in the fall/winter due the timing of gestational cycles, giving way to seasonally lower prices. October hog futures gained 1.52 cents to 68.02 cents/pound Monday, while May rose 0.90 cents to 75.72.
Cotton futures began the week higher Monday despite Chinese stocks closing lower, perhaps on month-end positioning. The tighter than expected balance sheet for cotton and the drop in the condition rating have given cotton bulls something to talk about as of late but world market problems are now the driver. While the global scene for cotton is largely still plagued by oversupply, the recent bullish data appears to be giving way to world economic and currency struggles, particularly related to Chinese demand fears. December cotton futures lost .13 cents to 63.13 cents/pound Friday, while Mar rose 0.17 cents to 62.85.