The grain markets are neutral while the oilseed markets are higher early Wednesday morning. The U.S. Dollar index is up another .12% to 98.05 as it inches back to the 12-year high it reached in March 2015. Previously, the dollar reached the 100-level in early 2003. This dollar strength is bearish for U.S. grain exports. The DJIA closed down 47 points Tuesday. FC Stone released their production estimates Tuesday, pegging corn yield at 165.0 total production at 13.291 billion bushels. September corn futures are down 0.25 cents to $3.685/bushel early Wednesday, while December lost 0.5 cents to $3.7825.
The soy complex was mostly higher in the overnight session, despite continued dollar strength. As we get closer the WASDE release next Wednesday, speculation mounts regarding how much further below 46 bushels/acre soybean production will be. Some talk of disease and the poor crop in the eastern Corn Belt, particularly Indiana, may give rise to bullish sentiment on top of what seems to be an oversold market. FC Stone released their forecast of 45 bushels per acre yesterday. September soybeans gained 5 cents to $9.5375/bushel earl Wednesday, while September is unchanged at 29.95 cents/pound and September meal rose $2.2 to $340.2/ton.
Wheat futures were mostly neutral in the overnight session after they have trended down in recent weeks on a strong winter wheat harvest and good spring wheat conditions. Australia’s biggest wheat exports, CHB Group, is expanding into Russia, allowing the cooperative to take of advantage of the competitiveness of Black Sea grain in Asian markets. Egypt’s state grain buyer, the General Authority for Supply Commodities reportedly lowered their moisture limit from 13.5% to 13.0% on Wednesday. September CBOT wheat futures gained 0.25 cents to $4.9375/bushel early Wednesday, while Sep KC wheat dropped 0.25 cents to $4.8475/bushel, and September MWE lost 1.75 cents $5.12.
Live cattle were mixed after yesterday’s gains with the October contract lower and the deferred months higher. Still, it appears nearby cattle bottomed on July 27 at 143, reversing a downward trend that began on June 11, however, another week or so will be able to confirm whether or not the reversal has steam. Boxed beef values dropped .51 for choice and .66 for select Tuesday suggesting we may see nearby futures ease today. October live cattle lost .10 cents to 148.20 cents/pound at the close Tuesday, while February futures rose 0.27 cents to 149.57. Meanwhile, September feeder cattle futures lost 0.12 cents to 210.82 cents/pound, while November feeders dropped 0.20 to 207.05.
Lean hogs rallied again on Tuesday after closing higher on Monday. Nearby hogs closed 6 cents above the 100-day moving average. Pork prices outperformed beef and chicken in July suggesting fall demand may be better than expected. The June Hogs and Pigs report implied the Q4 hog slaughter will run 7-8% over a year ago. Cash hogs values also continue to rise as pre-holiday demand starts to pick up. The nearby contract has risen steadily in recent weeks after bottoming on July 13. October hog futures closed 2.12 cents higher to 67.40 cents/pound Tuesday, while February firmed 0.65 cents to 69.62.