Excessive rainfall seemed to spur crop gains Sunday night. Soybeans led the grain markets higher to start the week, with traders citing continued rainfall across the Midwest and Plains. Those are likely hurting the quality of the maturing wheat crop, while causing issues for the corn and bean crops. July corn rallied 3.0 cents to $4.5625/bushel early Monday morning, while December rose 3.0 to $4.55.
The soy complex has risen across the board. As mentioned above, concerns about the damage excessive rainfall is doing to the growing soybean crop boosted new crop beans and products overnight. However, the implication that the 2014 harvest won’t be as large as previously thought suggest diminished relief for the old crop situation, which might explain the fact that old crop beans and meal are leading the charge. Asian palm strength is again boosting soyoil values. July soybeans jumped 17.25 cents to $14.33/bushel Sunday night, while July soyoil surged 0.51 cents to 40.64 cents/pound, and July soymeal added $4.9 to $464.1/ton.
The rains are also encouraging wheat market bulls. Wheat approaching maturity is vulnerable to fungi and protein loss if it’s constantly wet, so traders are buying winter wheat on those concerns. They’re also buying spring wheat, which probably reflects worries about flooding in the northern Plains. July CBOT wheat futures gained 4.0 cents to $5.8925/bushel, while July KCBT wheat advanced 7.5 cents to $7.2825, and July MWE futures vaulted 8.25 to $6.9875.
Cattle traders evened up positions before Friday’s COF report. The cattle market had clearly performed well recently, with cash and wholesale strength pulling futures upward last week. However, traders were apparently liquidating longs ahead of Friday’s monthly USDA Cattle on Feed report. That looked quite neutral, so we expect little reaction upon today’s opening. August cattle plunged 1.15 cents to 146.32 cents/pound at their Friday settlement, while December declined 0.27 to 150.50. Meanwhile, August feeder cattle futures slumped 0.67 cents to 206.87 cents/pound and October dipped 0.35 to 208.32.
Hog futures closed mostly lower last Friday. Recent cash and wholesale strength, as well over spillover cattle gains has recently boosted hog futures. However, Friday’s midsession reports indicated considerable late-week slippage in the country and in pork prices. Those probably encouraged long-liquidation before the weekend. August hog futures sank 0.60 cents to 129.15 at Friday’s close, while December lost 0.45 cents to 96.55.
Chinese news appeared to depress nearby cotton Sunday night. New crop cotton apparently rallied in concert with the grain and soy markets, although it’s hard to imagine the Texas crop being subject to excessive moisture in the foreseeable future. However, the expiring July contract dipped, which probably reflected a Chinese report indicating that country’s May cotton imports had fallen 45% from last year. July cotton futures slipped 0.16 cents to 88.00 cents/pound shortly after sunrise Monday, while December cotton bounced 0.32 to 77.40.