Large equity losses tolled on the agriculture markets last week as the USDA Crop Progress signaled the corn harvest was further along than what was earlier anticipated which subsequently weighed on the CBOT futures in the early trade.
The late corn’s weakness possibly exemplified a bearish commodity reaction to the hefty losses in the equity markets since those indicate a weak demand outlook. December corn futures plunged 9.5 % to $3.475/bushel at their recent close whereas the May futures slumped 9.5 % to $3.695.
Soybean and oil futures were also under immense pressure. The Crop Progress Report revealed that the soybean harvest was able to advance 20 % last week which was much farther along than expected.
The current equity index and crude oil losses are likely to be depressed on soyoil and soybean, whereas the dollar drop possibly mitigated the bearish impact. November soybean futures cascaded 12.25 cents to $9.525/bushel during last week’s trading, while the December soyoil plunged 0.89 cents to 31.90 cents/pound, with the December soymeal moving past up to $3.3 at $327.3
The wheat markets proved surprisingly within stable regions. The Crop Progress report had very little effect on the wheat outlook, which left futures generally open to outside influences. Hence, early corn, stock and bean losses appears to weighed on the given prices since that makes U.S. grain more competitive on global markets. December CBOT wheat was able to close at 3.25 % lower at $5.06.bushel while the December KC wheat gained 1.75 cents to %5.92.bushel then the December MWE wheat went up 0.5 to $5.6475.
Equity losses most probably undercut cattle futures too with the same being traded firmly due to the late rise in choice of beef cutouts. Still, equity losses nearly weighed on CME prices last week since such big stock drops went south for the economic outlook and red meat demand.
December live cattle futures plunged 1.45 cents to 162.47 cents/pound during last week’s trade while April futures diminished 2.80 to 160.10. For now, November and January feeder futures plummeted the daily 3.00-limit to 234 cents/pound and 228.12, correspondingly.
Large pork losses fuelled the torrid hog selling. The cash hog markets declined modestly last week but a astounding 4.5-cent plunge in pork cutout values are very likely provided for the real downward thrust to the current prices.
Finally, large equity losses weren’t able to assist the bullish cause either. The December and April hog futures posted respective 3.00-cent crashes to 91.92 and 89.00 cents/pound respectively.