After the Bell

Posted on Mon, 07/13/2020 - 14:46

Corn: Corn futures gapped lower on the open and faced pressure through the day. The market settled low-range and down 6 ½ cents to 8 ½ cents. Weekend rains were more widespread than anticipated and weather forecasts to start the week were wetter and cooler compared with updates heading into the weekend. That prompted traders to actively remove weather premium, with the drop below the 100-day moving average accelerating sales.

Soybeans: November soybean futures dropped 15 1/2 cents today and closed at $8.75 1/4. December soybean meal fell $8.40 to $291.70 and December soybean oil closed down 14 points at 28.70 cents. The weather scare in the soybean and corn markets has quickly faded based on the downdraft in prices Friday and today. The wetter, milder forecast for the region coming out the weekend (with the exception of the southwest Belt) weighed heavily on the soybean market today. Big speculative funds appear to be shedding recently added long futures positions.

Wheat: SRW contracts led losses in the wheat complex, falling 5 1/2 to 11 cents through the March contract. HRW contracts were mostly around 3 cents lower and HRS contracts were roughly 5 to 7 cents lower. SRW wheat futures faced followthrough selling after a poor close to last week’s trade and heavy spillover pressure from the soybean and corn markets. While wheat crop and export forecasts for key exporting countries continue to decline, world stocks are still projected to rise during the 2020-21 marketing year and be record-large.

Cotton: Cotton futures settled 79 to 96 points lower through the March contract and finished low-range. Cotton futures faced profit-taking pressure today as the market pulled back from recent gains. Funds, who have been active on the long side of the market recently, were net sellers today. Price direction on Tuesday will come from this afternoon’s crop condition data, specifically Texas crop ratings.

Hogs: August lean hog futures closed up $1.40 at $51.275, near the session high and hitting a three-week high today. Short-covering and some perceived bargain hunting were featured in lean hog futures today. More good price gains this week would better suggest hog futures have bottomed. However, the premiums futures hold to the cash hog market could limit followthrough buying interest.

Cattle: Live cattle futures didn’t stray too far from unchanged today, ending split with nearbys 35 to 37 ½ cents lower and deferred months posting slight gains. Feeder cattle pushed to multi-month highs, finishing 75 cents to $1.85 higher for the day. Feeder cattle futures pushed to their highest levels since spring today, with heavy losses in corn and higher prices at an Oklahoma City feeder cattle auction bolstering prices. That lent the live cattle market some spillover support, though the market’s upside was still limited by concerns about a resurgence of Covid-19 and the re-enactment of lockdown measures in some areas.