Crop markets supported by declining crop conditions

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Corn futures are trading higher at midsession. Declining yield and crop production ideas and outside markets are supporting the corn market. Corn condition ratings fell 3 points last week to 57% good to excellent. This compares to 70% last year and the ten-year average of 59%. Weather forecasts do not show much rain in the dry areas of the central Corn Belt. Strong gains in Dow Jones futures and crude oil and weakness in the dollar are also supportive factors. September is 6 cents higher at $7.26 1/2 and December is 5 1/4 cents higher at $7.39 3/4.  

Soybean futures are higher at midday. The market is being supported by the decline in crop condition ratings. Good to excellent rated crops fell 2 points last week to 59% good to excellent. That is below the 64% at this time last year, but still above the ten-year average of 57%. Dry weather remains a concern in the central Midwest. Declining yield projections will continue to be a bullish factor. Outside markets are also supportive as the stock market and crude oil are solidly higher this morning. September is 9 1/2 cents higher at $13.86 and November is 8 3/4 cents higher at $13.94.

Wheat futures are solidly higher at midsession. Concern about the declining supplies of global million wheat supplies and weakness in the dollar index are supporting the market. Spring wheat harvest results have been disappointing and USDA’s crop condition ratings fell 4 points last week to 62% good to excellent. Rainfall in Germany is hurting the quality of its wheat crop. Dry weather remains a concern in the U.S. Plains and HRW belt ahead of seeding the fall. CBOT September is 16 1/4 cents higher at $7.51 3/4, KCBT September is 10 3/4 cents higher at $8.32 1/4 and MGE September is 9 cents higher at $9.52 1/4.   

Cattle futures are trading steady to mixed at midsession. Front end futures are being pressured by ideas that boxed beef prices will turn lower once retailers complete Labor Day weekend orders. Cash trade is currently expected to be near steady this week compared to last week. However some deferred contracts have turned higher on strong gains in the stock market and weakness in the dollar index. October is steady at $115.70 and December is 20 cents lower at $117.23.

Lean hog futures are lower at midday. Cash markets turned lower on Monday and pork cutouts were down 97 cents. There is concern that pork demand and pork prices will decline once Labor Day weekend orders are filled. Further losses are being limited by the already large discount to the cash market. Also, the monthly Cold Storage report showed smaller-than-expected pork in storage. October is $1.00 lower at $88.00 and December is $1.05 lower at $84.10.



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