Corn was down overnight after testing one-year highs yesterday, likely on a bullish follow-through to last Friday’s report. Corn crop conditions were unchanged at 69% good-to-excellent in Monday afternoon’s Crop Progress report. Most of the slippage was due to improvements in the western Corn Belt states, led by South Dakota, which improved by 3%. The eastern Corn Belt reported declines of 5% in IL, 4% in OH, and 2% in IN. Export inspections for corn were 1.056 million tonnes, 12.6% higher than last week and 11.6% higher than a year ago. Crude is down. The US Dollar is up .19% to 96.67. September corn futures fell 2.75 cents to $4.38/bushel early Tuesday morning, while December lost 3 cents to $4.4875.
A lower soybean crop rating is helping support futures in the soy complex early Tuesday morning. Good-to-excellent ratings for soybeans fell by 1% with deterioration in IL, IN, and OH and some improvement in the western states. Soybean export inspections came in at 134.7 million tonnes, compared to 223.1 last week and 118.2 a year ago. The NOPA crush report will be out tomorrow. Average trade estimate for June crush is 141.478 million bushels. Weather continues to be the key driver for support in soybeans in the critical months of July and August. August soybeans climbed 5.5 cents to $10.43/bushel just after sunrise Tuesday, while August soyoil lost .12 cents to 32.62 cents/pound and August meal gained $4.0 to $360.70/ton.
Wheat futures continue to trade mixed early morning Tuesday after the bearish supply/demand report last week. Wheat harvest was reported to be 65% complete this week, compared to the 68% average. Spring wheat conditions were reported to be 71% good-to-excellent, compared to 70% last week and 70% last year. Wheat export inspections were 250 million tonnes in Monday’s report, compared to 370 last week and 387 a year ago. September CBOT wheat futures firmed 1 cent to $5.7675/bushel early Tuesday, while Sep KC wheat dropped 1.15 cent to $5.66/bushel, and September MWE slipped 0.25 cents to $5.97.
Monday was yet another day that CME live cattle futures fell as demand seems to be in a free fall. While this progressive slide lower can feel extreme, seasonal factors may largely explain the decline. Even so, some analysts feel that cattle could go as low as 140 cents/pound in the next 12 months due to competition from cheaper meats, yet the traditional ebb and flow of summer demand suggests that during early August, pre-Labor Day demand could support prices. August cattle dropped .85 cents to 146.60 cents/pound Monday, while December futures lost .40 cents to 151.60. Meanwhile, August feeder cattle futures rose 0.85 cents to 211.22 cents/pound, and November feeders gained 0.02 to 206.20.
Lean hog futures traded higher Monday as buying picked up in the pork market. While it seems a bit soon, it may be a prelude to the Labor Day demand shifter higher as producers gear up for another major U.S. holiday on September 7th. August hog futures gained .87 cents to 73.95 cents/pound Monday, while December advanced 0.67 cents to 59.17.
Cotton futures are mixed early Tuesday morning as they were Monday after Friday’s bearish Supply and Demand release. The report detailed higher than expected production, stocks and exports, as well as weaker Chinese demand. Monday’s cotton condition report show a 57% good-to-excellent rating, compared to 57% last week and 56% a year ago. December cotton futures lifted 0.15 cents to 65.67 cents/pound, while May raised .09 cents to 65.71.