Grains break to new lows and even some contract lows in new crop corn and new crop soybeans on fund selling.
Randy Martinson, Martinson Ag, says the markets are disregarding lower crop ratings and flooding in the Northwestern Corn Belt and looking at a cool, wet forecast as beneficial.
Corn ratings dropped 3% to 69% good to excellent in Monday’s USDA Crop Progress Report, while soybeans fell 3% to 67% and spring wheat dropped 5% to 71%.
Meanwhile, crops are setting underwater in areas of Northern Iowa, Southern Minnesota, Southeast South Dakota and even Northeast Nebraska. The damage to crop or yield loss is undetermined right now and any lost acres will be accounted for as unharvested acres in futures reports by USDA.
Martinson says the grain markets are also positioning ahead of end of month and USDA reports and building a negative bias into prices.
Average trade guesses on acreage show a 250,000 to 300,000 acre increase in corn area, soybean acreage estimates indicate 250,000 to 350,000 more acres and wheat an additional 75,000 to 150,000 acres.
Live cattle futures are trading mixed after June and August contracts closed higher and made new highs for the move on Monday, following record cash trade. Deferred contracts were slightly lower after the bearish placements in the Cattle on Feed Report at 104.3%.
Lower corn prices supported feeder cattle futures early but end of month and quarter profit taking may be trimming gains.
Lean hogs are mixed trying to consolidate after scoring more new contract lows Monday with forward spreading.
