Corn: July corn futures closed down 11 cents at $6.53 1/4 and December corn futures closed up 1/4 cent at $5.36. The weather market has fizzled, for now. A midday update from World Weather Inc. said “an excessively wet outlook for the heart of the Midwest” remains in place, and the forecaster looks for a high-pressure ridge during the first week of July to be mostly over the high Plains region. “The ridge will be broad based enough, however, to bring warmer weather to much of the central United States and a part of the western Corn Belt. This should reduce some of the rainfall expected, although totally dry weather is not likely.” Today’s USDA Weekly Export Sales Report showed U.S. corn net sales of 216,300 MT for 2020-21, up from the previous week but down 33% from the prior four-week average.
Soybeans: November soybeans fell 8 1/2 cents to $12.91 3/4. July soybean meal fell $8.40 to $345.80, the lowest close since October. July soyoil rose 57 points to 62.70 cents. Soybeans remain under pressure from generally crop-favoring weather across most of the U.S. Midwest, while meal-oil spread trading kept soymeal prices on the retreat while boosting soyoil. “Excessive” rain is likely for areas of the Midwest over the next two to three days, with Missouri, Illinois, southeastern Iowa and areas of Indiana likely to see the most rain, says World Weather, though certain pockets will remain relatively dry. USDA reported 141,700 MT in soybean sales for 2020-21 delivery and 47,300 MT in sales for 2021-22 the week ending June 17.
Wheat: September spring wheat futures rose 3 cents to $8.05 3/4 a bushel. SRW futures ended 10 to 13 cents lower, while HRW futures fell 6 to 7 cents. Wheat futures fell along with corn and soybeans, with the winter wheat market leading the early price decline. But wheat rebounded well off the lows around midmorning, led by spring wheat amid ongoing weather and crop concerns in the Northern Plains. Eastern areas of the Northern Plains are expected to receive some periodic rainfall through next week, though amounts will be light and coverage scattered. Traders are watching a building heat wave in the Pacific Northwest that’s expected to move into the Northern Plains, likely further stressing the struggling spring wheat crop.
Cotton: Futures fell 43 points in the July contract, which started the delivery process today, and 21 points lower in the new-crop December contract. Cotton futures continue to get much of their price direction from the row-crop markets, following them lower on the sharp early morning retreat and then rebounding as corn and soybeans came well off their lows. Pressure also originated from weather forecasts calling for West Texas to get much-needed rains this weekend and early next week. World Weather Inc. says rainfall totals in the area could range from 0.75 to 2 inches, though “some hail damage is possible.” The Delta and Southeast are expected to receive “well-timed rains and seasonably mild to slightly cool temperatures,” according to World Weather. Weekly upland cotton export sales totaled 74,700 running bales for 2020-21 and 148,900 bales for 2021-22.
Hogs: August dropped $2.025 to $98.70, the ninth decline in the past 10 days and the lowest close in over two months. Hog futures will trade with an expanded $4.50 limit tomorrow. Lean hog futures remained in freefall as weaker pork prices and concerns over demand combined with a technical collapse on the charts. USDA’s midday reports showed national direct carcasses ranging from $109.72 to $124.75 per hundredweight, compared to yesterday’s average of $122.78. Pork cutout values averaged $114.82 at midday, up from $107.82 yesterday but still not far from two-month lows reached earlier this week. Today’s USDA Quarterly Hogs & Pigs Report was expected to show the total U.S. herd as of June 1 was about 2.3% smaller than the same date a year earlier.
Cattle: August live cattle closed down $0.25 at $122.625. August feeder cattle closed up $1.45 at $157.15. Live cattle futures today saw some mild profit-taking pressure and chart consolidation ahead of Friday afternoon’s monthly USDA Cattle on Feed report. Traders were also awaiting further direction from the cash cattle market. There was some additional cash cattle trade from $125 to $126 in Iowa and Nebraska Wednesday, with Texas seeing a few sales at $122. The noon beef report Thursday showed Choice cutout value down $4.19 and Select grade up $1.00 on movement of 70 loads. Beef cutout values eroded recently due in part to reduced grocer buying for the post-July 4 period. Today’s cattle slaughter is estimated at 119,000 compared to 120,000 last Thursday and 118,000 one year ago.