Corn: July corn futures closed up 4 cents at $6.59 1/4 today, while December corn fell 9 1/4 cents to $5.57. The recent weather rally appears to have fizzled for now, with rain reported over much of the Midwest over the weekend. World Weather Inc., in a midday update, projected more rain for Iowa, northeastern and east-central Missouri and much of central and southern Illinois later this week. However, northern and western regions of the Corn Belt still need more rain. Weekly U.S. corn export inspections totaled 1.481 million metric tons (MMT), USDA said this morning, down from the previous week’s revised total of 1.611 MMT, but still above the pace required to hit USDA’s 2020-21 export forecast. This afternoon’s USDA crop progress report showed the U.S. corn crop at 65% “good” or “excellent” condition as of Sunday, down from 68% a week ago and 72% a year ago. Analysts on averaged expected a 66% good-to-excellent rating.
Soybeans: July soybeans rose 19 cents to $14.15 a bushel and November soybeans rose 6 1/4 cents to $13.19 1/4. July soybean meal fell 30 cents to $373.10 per ton and July soybean oil rose 221 points to 60.33 cents. Soybean futures posted a sharp rebound from losses overnight amid continuing concerns over dry Midwest soils and news of recent Chinese demand. USDA early today confirmed China bought 336,000 MT of soybeans for delivery during the 2021-22 marketing year. Another 120,000 MT of sales went to “unknown destinations,” USDA said. Overnight, soybean futures dropped near the 2 1/2-month lows reached last week on expectations Midwest crops will receive a boost from weekend rainfall across much of the region. The USDA today reported 60% of the U.S. soybean crop in good-to-excellent condition as of Sunday, down from 62% a week ago, down from 70% a year ago and meeting analyst expectations.
Wheat: Futures closed fractionally to around a penny lower in SRW contracts and around 6 cents lower in the HRW market, while HRS futures posted fractional to 2-cent gains. Wheat futures faced price pressure through overnight trade and early daytime action, but seller interest faded as soybeans turned higher and corn rose off its lows. Spring wheat futures were mildly supported by crop concerns. While some of the Northern Plains received recent rains, the region remains far short on soil moisture. USDA’s weekly crop progress report today showed the winter wheat harvest 17% completed as of Sunday, up from 4% the previous week and lower than the five-year average of 26%. The spring wheat crop’s condition slipped to 27% good-to-excellent, down from 37% a week ago and lower than the 2-percentage point drop expected by analysts.
Cotton: Cotton finished 33 points lower in the July contract and 1 point higher in December futures. Overnight weakness in the grain and soy markets weighed on cotton initially, but the market avoided active selling and rebounded when the row-crop markets came off their lows. A weaker dollar helped limit seller interest. Areas of the Delta and Southeast received heavy rains after Tropical Storm Claudette made landfall last Friday. Another tropical storm is expected during the middle of next week, though there’s a lot of uncertainty about the track of the storm. West Texas will be hot and dry this week and rainfall is needed in this region. There is potential for some rainfall for this region by the end of the two-week outlook.
Hogs: Lean hog futures ended sharply lower, with the August contract down the initial daily three-cent limit to $103.675 per hundredweight. Hog futures tomorrow will trade with an expanded limit of 4.5 cents. Wholesale pork prices jumped today but are still down from an early-June peak, with retailer buying having tapered off and pork supplies expected to increase later this summer. National direct carcasses this morning ranged from about $110 to $135, according to USDA reports, after ending last week at an average of $122.62. Traders await two USDA reports this week that will provide a glimpse into current pork stockpiles and supplies in the second half of 2021 and beyond. USDA is scheduled to release its monthly Cold Storage report tomorrow and its Quarterly Hogs & Pigs Report on Thursday.
Cattle: August live cattle closed down 52.5 cents at $121.025 per hundredweight, while August feeder cattle closed up 7.5 cents at $155.10. Live cattle futures felt some pressure today by a weakening wholesale beef market to start the week. Beef prices fell 89 cents for Choice boxes and $2.24 for Select grade at noon today on movement of 33 loads. Grocer buying for Fourth of July and summer features has been completed. Traders are anticipating this week’s cash cattle trade after last week’s average cash trading price was $122.84, up $2.81 from the week prior. We see cash cattle trading near steady this week from last, as packers won’t likely be too aggressive on bidding ahead of Friday’s monthly USDA Cattle on Feed report.