Corn futures were mixed overnight with a weaker tone after weekend rainfall was less than advertised, thus allowing for some much needed drying in many areas. Dec corn was down 1-3/4 cents to 4.42. Conditions are less than ideal though and prices are still propped up in the upper areas of their recent ranges. The planting delays will provide support as will the prospects for lighter yields due to the late planted crop. Now, the market will closely watch upcoming forecasts for direction. Private forecasters are looking for a 6 to 9 million acre reduction this year. Weekly plant progress will be out after the close this afternoon, Weekly Export Inspections at 10 am CT.
Soybean futures were down 3 to 4 cents overnight putting Nov back down to the 9.00 level. Prices slid on Friday on thoughts that the market may have moved high enough in the near term to factor in planting delays, and then slipped further last night. Weather and tariffs to be imposed on incoming goods from Mexico set start on June 10 will be lined up in the trade’s sights this week. The Trump administration will impose a 5% tariff that date with another 5% each month through October raising the level as much as 25%.
Wheat futures were up 2 cents in CBOT wheat, 6 cents in KC and look to take the lead over the grain and oilseed rally as wet conditions in the U.S. threaten quality, and dryness in Russia offers support. A hook reversal lower was posted on in Friday’s trade, but are mixed to lower on follow through selling after the market posted a hook reversal on Friday.
Cattle futures are called steady to lower on follow through after futures plunged on Thursday and Friday. Expectations for steady to firmer cash had us somewhat surprised that prices were on the defensive. With the grilling season kicking in, we expect better demand as the retail markets likely feature beef.
Hog futures are called mixed. Prices tumbled early in the week, but consolidated Thursday and Friday. Additional cases of ASF in what we would term parts of the eastern world continue to be alarming and concerning. A strong sale of pork to China on Friday’s export sales report was also viewed as beneficial for the market.