Corn futures remained under pressure Thursday morning. Weakness spilling over from the wheat pit in reaction to news that some prohibited GMO wheat had been found in the Pacific Northwest was probably playing a part in the drop. Reports of sliding cash bids may also have undercut old crop futures. July corn had fallen 12.75 cents to $6.5225/bushel by late Thursday morning, while December slid 7.5 cents to $5.5825.
The international reaction to the GMO wheat news seemingly weighed upon soybean futures as well Thursday morning, although one could also point to the idea that persistent corn planting delays will eventually boost U.S. soybean seedings. Conversely, old crop prices may have found a bit of support from talk that the recent surge in farmer sales was dwindling. July soybean futures declined 5.75 cents to $14.96/bushel around midsession Thursday, while July soyoil dipped 0.24 cents to 48.39 cents/pound, and July soybean meal skidded $2.3 to $442.0/ton.
Wheat futures proved quite vulnerable to international reactions to news that prohibited GMO wheat had been found growing in the Pacific Northwest. Japan banned U.S. imports and the E.U. says it will test all U.S. shipments over the short term. July CBOT wheat futures dove 10.5 cents to $6.9225/bushel just before lunchtime Thursday, while July KCBT wheat sank 9.25 cents to $7.385, and July MGE futures lost 6.75 cents to $8.09.
Wednesday afternoon news of a sizeable bounce in choice cutout values boosted cattle futures early Thursday morning, since higher beef prices might persuade packers to pay up for country cattle. Steady or higher country trading would probably boost discounted nearby futures. However, the late-morning drop strongly suggests news of cash weakness and/or reduced trader expectations for later this week. June cattle slid 0.80 cents to 120.57 cents/pound Thursday morning, while December tumbled 0.85 to 125.32. Meanwhile, August feeder cattle futures dropped 0.82 cents to 144.80 cents/pound, and November sank 0.75 cents to 149.90.
Wednesday news of a planned Smithfield Foods takeover by a large Chinese firm appeared to support CME swine futures again Thursday morning. Despite widespread doubts about the speed with which increased U.S. export might flow to China, traders rather obviously suspect that will be the case. One cannot discount the potential for short-term seasonal gains as well. June hog futures advanced 0.52 cents to 95.25 cents/pound late Thursday morning, while the December contract gained 0.40 cents to 80.55.