The grain markets are firmly lower early Monday morning. The 6 to 10 weather outlook is calling for below average rainfall and above average temps for much of the Midwest, though parts of Indiana and Ohio appear to have more rain in their forecast. The largely drier system bodes well for corn pollination and crops in general. Corn crop ratings, due out today, are expected to be 1-2% lower the 68% rating last week. Greece’s future uncertain after rejecting creditor terms. The US Dollar Index is up .34 to 96.46. July corn futures gained 6 cents to $4.1975/bushel at the close Thursday , while December rose 5.25 cents to $4.37.
The soybean market is lower to start the week after rallying on lower ending stocks last week. Profit taking and a more favorable weather outlook are presumably behind the resistance. The trade is expecting soybean crop ratings to be 1-2% lower from the 63% rating last week. The markets are also anticipating this Friday’s WASDE report and are eager to weigh the data against the recent stocks and acreage numbers. July soybeans fell 14.5 cents early morning Monday to $10.3075/bushel, while July soyoil lost .54 cents to 32.82 cents/pound, and July meal lost $3 to $336.10/ton.
Wheat futures retreated before the open Monday as weather eases and the global financial system is nervous about the Greek default. The U.S. winter wheat harvest is likely to benefit from drier outlook, while, at the same time, Canada continues to struggle with drought conditions parts of western Saskatchewan and eastern Alberta have gotten less than 40 percent of normal rainfall since April 1. July CBOT wheat futures slid 14.5 cents to $5.7125/bushel at dawn Monday, while July KC wheat lost 12.75 cents to $5.6325/bushel, and July MWE lowered 8.25 cents to $5.98.
Live cattle futures were higher late last week despite a downward trend in recent weeks. Beef cutouts were lower and may suggest lower nearby futures Monday. Live cattle closed last week above the 40-day moving average of 150.78 and will today will find resistance at 154 and support at 148. August cattle futures gained .15 cents to 151.22 cents/pound Thursday, while December futures fell .02 cents to 154.72. Meanwhile, August feeder cattle futures sank 1.05 cents to 218.93 cents/pound, and November feeders lost .77 cents to 213.45.
Lean hogs traded higher late last week seeming to reverse the downward trend that started in early May after futures reached the quarterly high of 85.20 cents/pound. Reuters recently reported that Brazil’s JBS has agreed to buy Cargill’s pork unit for $1.45B. While oversupply has put pressure on lean hog futures recently, the tightening of the sow supply, as suggested by the USDA last week, could lead to continued firmness this week. August hog futures gained 1.52 cents to 76.37 cents/pound Thursday, while December advanced .30 cents to 63.80.
ICE cotton futures are mixed early Monday morning after a drastic decrease in U.S. acreage numbers last week. It appears that although global cotton industry has been facing a glut from oversupply in China and India, a substantial decrease in U.S. acreage due to wetter than normal conditions in Texas and the southern plains, could help bring some equilibrium to the markets. The WASDE report due out this Friday will help traders assess July cotton futures lifted .59 cents to 66.95 cents/pound at dawn Monday, while December fell .54 to 66.85.