Corn futures continued declining Monday night. Although yesterday’s Acreage report seemed supportive of new-crop corn futures, the June 1 Stocks result easily topped expectations and sent the whole complex lower. The decline persisted overnight, due in part to another good condition rating on the weekly Crop Progress report. September corn dipped 2.75 cents to $4.16/bushel early Tuesday morning, while December lost 2.5 to $4.2175.
The soy complex is mixed in early Tuesday action. Monday’s Grain Stocks report sent old crop soy futures tumbling, but those losses proved substantially smaller than those new-crop contracts suffered in reaction to the huge soybean acreage result. That disparity continued overnight, with new-crop bean and meal futures dragging nearbys downward. The oil market proved surprisingly firm. August soybeans skidded 1.5 cents to $13.2825/bushel shortly after sunrise Tuesday, while August soyoil bounced 0.06 cents to 39.01 cents/pound, and August soymeal sagged $1.3 to $429.4/ton.
The wheat markets also remained under pressure. The quarterly Grain Stocks report was somewhat supportive of the golden grain markets, since early-June stocks came up short of forecasts. However, both winter and spring wheat acreage figures topped industry expectations, thereby spurring widespread selling. The bearish global situation favors bears as well. September CBOT wheat futures slid 1.5 cents to $5.76/bushel in early Tuesday trading, while September KCBT wheat slumped 2.5 cents to $6.9775, and September MWE futures slipped 1.25 to $6.7575.
Resurgent beef prices are boosting cattle futures. Traders rather clearly suspected late-June gains in cash cattle and wholesale prices had run their course and the complex was due for a seasonal setback. Futures suffered accordingly. However, beef cutouts surged to fresh highs yesterday afternoon, thereby giving rise to fresh bullishness. August cattle surged 0.97 cents to 151.05 cents/pound as Tuesday dawned over Chicago, while December climbed 1.05 to 154.77. Meanwhile, August feeder cattle leapt 2.12 cents to 214.90 cents/pound, and October feeders jumped 1.85 to 216.12.
Hog futures resumed their bullish reaction to last Friday’s USDA hog report. The quarterly Hogs & Pigs report stated the spring pig crop and hog population numbers well below forecasts last Friday, thereby sparking limit-up gains in most contracts yesterday. Mixed Monday afternoon news did little to deter bulls from buying actively again overnight. August hog futures advanced 0.52 cents to 133.35 cents/pound Monday night, and December soared 2.92 cents to 101.52.