Ag markets began the week in mixed fashion

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Corn futures continued sliding in Monday morning trading. Highly favorable growing conditions are boosting corn crop prospects here in the U.S., with forecasts implying more of the same through the first half of August. Other considerations seem to be falling by the wayside at this point. The weekly Export Inspections report stated the corn total moderately above expectations, but that did little to boost prices. September corn futures fell 8.75 cents to $4.6725/bushel by late Monday morning, while December slid 5.75 cents to $4.58.

The soy complex rebounded in response to an industry report. The same weather boosting the production outlook and depressing corn prices did the same to soybeans in early Monday trading. However, a respected Memphis firm published its 2013/14 production forecast around midmorning, thereby supporting prices somewhat. The soybean oil market had rebounded from multi-month lows in concert with Asian palm oil prices. September soybean futures dropped 9.25 cents to $12.035/bushel around midsession Monday, while November beans were unchanged at $11.81. September soyoil bounced 0.28 cents to 42.77 cents/pound, while September soymeal sagged $5.5 to $379.7/ton.

Wheat proved surprisingly weak after trading firmly Sunday night. The golden grain markets apparently followed corn and beans lower in early Monday action, then turned decisively lower when pit trading commenced. There seemed to be no particular news behind the drop, so traders were quick to blame technical factors for putting the nearby CBOT contract at a 13-month low. September CBOT wheat dove 18.0 cents to $6.425/bushel around lunchtime Monday, while September KCBT wheat tumbled 13.5 cent to $6.9325, and September MGE futures lost 8.0 cents to $7.3325.

Cattle and feeder trading was quite mixed Monday morning. Cattle traders are seemingly uncertain about short-term prospects for the cash and wholesale markets, so they are probably unwilling to push the market very far in either direction. And while a seasonal advance will very likely occur during the coming weeks and months, there is no guarantee it will live up to the implicitly bullish forecasts already built into CME futures. October cattle climbed 0.07 cents to 124.55 cents/pound as traders began thinking about lunch Monday, while December was steady at 127.00. September feeder cattle futures inched up 0.07 cents at 157.07 cents/pound and October sank 0.37 cents to 159.65.

 

Lean hog futures vaulted upward Monday morning. The moderate rise posted by pork cutout values late Friday afternoon probably sparked the move, especially with the CME lean hog index, which futures cash-settle against still quoted well above the latest futures values. Bulls may also be reacting to seeming tightness in current hog supplies. The October contract jumped 1.692 cents to 85.57 around midday Monday, while December surged 1.40 cents to 82.20.



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