Corn futures traded lower overnight near yesterday’s session lows that included double-digit declines. Dec was down a nickel to 4.58 making the market look slightly negative. However cool temps and rain are limiting the growth of late-planted corn and should give prices decent support. Seven states, in particular have issues this year. IN, MI, MO, OH, WI, SD, and IL all have a wet 7-day forecast and, collectively, several million acres left unplanted. Look for choppy, mid-week trade as traders buy and hedge corn at multi-year highs.
Soybean futures traded as much as 7-1/4 cents lower overnight. Nov dipped to 9.33, but stayed within Tuesday’s trading range and above the contract’s 200-day moving average. Roughly 17 million acres of beans left to plant and wet weather forecasts across the eastern Corn Belt are seen supporting the market.
Wheat futures fell to a 1-week low overnight. Weather forecasts will be closely watched to see if harvest can continue to progress across the southern Plains. Egypt is tendering for wheat shipment for Jul 22-31. For now, July Chi wheat is trading 8 cents lower to 5.23-1/2; Jul KC down 8 to 4.57-1/4; and, Jul Mpls down 2-3/4 to 5.49-1/2.
Cattle futures are called mixed. A disappointing close on the front month cattle contracts may bring additional long liquidation, as prices are looking to form a consolidation pattern and potentially a bottom. Plus, a sluggish tone to the beef market is also noted.
Hog futures are called mixed. Signs of countryside cash prices firming could bring buying support into the hog market. China halted imports from a Canadian firm for safety reasons and cash hog prices in China moved higher which helped prop up prices for a while yesterday, but futures slid lower for the day and look to have run into resistance after a brief recovery.