Selling continued today in the grain markets after yesterday’s WASDE report which was mostly favorable towards grain stocks. Old crop corn ending stocks were adjusted higher as the report lowered corn usage for ethanol. The trade will now turn their eyes from the WASDE to focus on the upcoming June 30 planted acres report. Midwest weather forecasts are mostly favorable except in KS and MO where plantings are behind. The U.S. Dollar Index strengthened .45% to 95.14 . July corn lowered .75 cent to $3.565/bushel early morning Thursday and December dropped 1.5 cents to $3.7375.
The soy complex weakened Thursday despite old crop soybean stocks being cut by 20 million bushels by the June WASDE, as they increased crush and exports by 10 million bushels each. While KS and MO plantings lag, putting planting progress at 79%, behind the five year average of 81%, the weather outlook is mostly favorable for the Midwest nearby. Soybean weekly exports rose to 244,000 tons, up from 147,000 tonnes this time last year and above estimates of 50,000-150,000 tonnes. July soybean futures declined 9.5 cents to $9.40/bushel at the end of trading Thursday, while July soyoil fell 0.58 cents to 33.29 cents/pound, and July meal dipped $1.0 to $313.4/ton.
Wheat futures were fell sharply again Thursday, likely in response to the WASDE which eased concerns over the winter wheat harvest. The USDA forecasted in the winter wheat production a bit higher that the trade was expecting. Also, they projected the 2015-16 ending stocks to be 814 million bushels, 21 million bushels above estimates. July CBOT wheat futures are down 9.25 cents to $5.0425/bushel at the close Thursday, while July KC wheat pulled back 6.75 cents to $5.2375/bushel, and July MWE fell 4.25 cents to $5.63.
Cattle futures retreated Thursday despite a slight increase in beef cutout values today. Wholesale beef prices have been strengthening in recent weeks and an end-of-week consolidation on technicals is not uncommon. August cattle futures lost 0.37 cents to 153.15 cents/pound at the end of trading Thursday, while December futures lowered 0.22 cents to 156.15. Meanwhile, August feeder cattle futures slumped .52 cents to 226.25 cents/pound, and November feeders fell .35 cents to 220.45.
Lean hog futures fell again Thursday. The USDA reported wholesale price weakness yesterday perhaps as wholesalers complete coverage for the impending Independence Day holiday. The market will continue to watch and adjust as pork supplies reach their seasonal lows around the same time that pork demand for the year reaches its highest level. In other news, Chinese hog prices are up 32% helped by the “holiday effect” and comes on the heels of near 18-month profit losses in their hog production. August hog futures fell .92 cents to 78.32 cents/pound at the close Thursday, while December slumped 0.85 to 65.87.