A bearish USDA report from a day earlier continued to batter corn futures on Tuesday.
The report, which raised expected 2019 U.S. corn production from last month – while most analysts were expecting a decline – sent corn futures to limit declines on Monday and weighed on the market again today, pushing prices to near three-month lows. In Monday’s report, the USDA also trimmed the estimated 2019-20 average farm price for corn by a dime to $3.60/bu. The weekly crop progress report released after the close on Monday put the nationwide crop at 57% good to excellent as of Sunday, unchanged from a week earlier. September corn fell 19 ¼ cents to $3.66 and December lost 16 ¼ cents to $3.76 ½.
Wheat was mixed on the day, with the losses in corn again spilling over to pressure. Wheat was further undermined by ongoing U.S. and European harvest pressure. September Chicago wheat managed a ¼-cent gain to $4.72 but September Kansas City lost 8 ¾ cents to $3.83 ½ and September Minneapolis was down 6 cents at $5.03 ¼.
Soybeans posted gains as the market managed to brush off the losses in corn and reacted to the downward revision in expected production in Monday’s USDA report. The USDA lowered its soybean crop estimate to 3.680 billion bu from 3.845 billion bu previously. Soy condition ratings were unchanged at 54% good to excellent. September soybeans were up 9 ½ cents at $8.76 ¼ and November gained 9 ¾ cents to $8.89.
Live cattle futures were sharply lower again today, while lean hogs were also weaker.
Source: DePutter Publishing Ltd.
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