Lean hog futures were strongly lower on Tuesday. Lower pork prices, weakness in the cash market and the sharp decline in the stock market weighed on futures. There was talk today that several packing plants will be closed on Friday due to a surplus of pork while most will be closed on Monday for the Fourth of July holiday. July closed 78 cents lower at $78.75 and August was $1.23 lower at $80.95.
Corn futures were strongly lower on Tuesday, hitting new contract lows. Drier weather in the Corn Belt and moderate temperatures should help crop conditions this week after declining last week. Forecasts show generally favorable weather over the next couple of weeks, when much of the crop will be pollinating. July ended 8 3/4 cents lower at $3.25 and December was 8 3/4 cents lower at $3.44.
Attention will now turn almost completely to the growing process, say Steve Meyer and Len Steiner, CME Daily Livestock Report. USDA made its first estimates of corn silking and soybean blooming this week but both numbers are quite small and dominated by the early-planted southern states.
Of more concern is the continued decline in overall crop ratings, say Meyer and Steiner. While this week’s combined percentages of good and excellent ratings are not at all bad, they are again lower with corn and soybean acres in those two categories falling to 73 percent and 67 percent, respectively.
Soybean futures closed lower on Tuesday after a choppy trading session. Favorable crop weather forecasts, spillover pressure from corn and wheat and outside markets weighed on futures. Wet weather lowered soybean condition ratings last week and delayed some of the last leg of planting, but drier Midwest weather this week and moderate temperatures should help conditions improve. July ended 7 3/4 cents lower at $9.47 1/4 and November was 7 1/2 cents lower at $9.19.
Source: Doane, CME Daily Livestock Report