Corn futures tumbled to new contract lows this week as the market continues to respond to USDA’s bigger-than-expected crop and carryover pegs, as well as a lack of demand news or weather threats in South America. The market is on a hunt for a level that spurs strong demand. Soybean futures dropped sharply the first two days of the week, then mounted a bit of a recovery. But skepticism about the market’s ability to reach USDA’s aggressive export forecast persists, especially given the sluggish start to the 2017-18 shipping season. Wheat futures are also lacking a bullish catalyst and thus continue to chop sideways.
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Live and feeder cattle futures extended their downtrend as cash cattle prices dropped sharply for the second week in a row. Traders were also wary of the Cattle on Feed Report after big placements numbers in the past two reports. Cash hog prices continued to slide, but tumbling hog futures found support late in the week.