Corn: December corn futures fell 3 cents to $4.11, nearer the session low and closed at a contract low close. The corn market is again succumbing to increased technical selling pressure as December futures approach the contract low. A drop below that level is likely to trigger pre-placed sell stops that would drive prices even lower.
Soybeans: November soybeans fell 3 1/4 cents to $10.08 1/2, hit a two-week low and closed near mid-range. September soybean meal fell $3.00 to $266.40, nearer the daily low and hit a contract low. September soybean oil rose 93 points to 57.20 cents, near the daily high and closed at a 12-month high close. The soybean and meal markets saw technical selling pressure today as their near-term chart postures have deteriorated the past week. It appears the spread traders were active today, selling soybean meal and buying soybean oil.
Wheat: December SRW wheat fell 8 3/4 cents to $5.50, nearer the daily low and closed at a contract low close. December HRW wheat lost 7 1/4 cents to $5.39 1/2, nearer the daily low and hit a contract low today. December HRS fell 3 cents to $6.00. The winter wheat futures markets today fell victim to chart-based selling and losses in corn and soybean futures.
Cotton: December cotton fell 67 points to 67.67 cents, nearer the daily low and hit a two-week low. The cotton futures market was hit with technical selling pressure today. A stronger U.S. dollar index that hit a five-week high today was also a daily negative for cotton. U.S.-China trade talks in Stockholm, Sweden have ended, reports said. Cotton traders are awaiting results to be reported.
Cattle: August live cattle rose $1.85 to $229.725, near the session high and hit another contract/record high. August feeder cattle rose $2.675 to $336.20, near the daily high and also hit a contract/record high. The powerful bull market runs in cattle futures roll on, with no early, solid technical clues that market tops are close at hand. In fact, recent rallies that have been followed by “backing and filling” on the charts are bullish signals the price uptrends can continue.
Hogs: August lean hogs fell $1.275 to $107.25, near the daily low. The lean hog futures market today saw some profit taking and technical selling pressure today, as bullish momentum is waning a bit. However, hog futures’ discount to the CME lean hog index will limit the downside in futures.