Thursday's USDA reports generally bearish for crop markets

Corn futures reacted weakly to today’s USDA reports. The USDA’s September Crop Production and WASDE reports seemingly held bearish implications for the corn outlook, since futures built upon early losses in the wake of the news. December corn futures fell 8.75 cents to $3.37/bushel in late Thursday morning action, while May lost 8.75 to $3.58.

The soy complex also declined in response to the USDA data. The ag industry was clearly anticipating bearish soybean results on today’s reports, since futures declined prior to the releases despite announcements of big bean sales. The reports stated the indicated a surprisingly large U.S. crop and increased stocks next year. November soybean futures dove 19.75 cents to $9.74/bushel just before lunchtime Thursday, while October soyoil sagged 0.20 cents to 31.43 cents/pound, and October soymeal fell $10.3 to $338.7/ton.

The wheat markets apparently viewed the USDA data bearishly. Traders at the various wheat exchanges were rather clearly expecting today’s USDA reports to hold bearish implications for the grain outlook. But, the numbers seemingly topped expectations, particularly global carryout, since futures added to early losses soon after the data were released. December CBOT wheat tumbled 13.75 cents to $5.06/bushel as the lunch hour loomed Thursday, while December KC wheat dropped 12.0 cents to $6.035/bushel, and December MWE wheat slumped 10.75 to $5.88.

Cattle futures seem to be suffering a technical breakdown. Hopes for fresh cash gains seem quite low in the wake of today’s CME drop. Traders seem to be reacting to Wednesday’s technical failure in October futures after the contract failed to sustain a move to fresh highs. October live cattle futures plunged 2.0 cents to 157.70 cents/pound late Thursday morning, while December futures plummeted 2.35 to 159.75. October feeder futures dove 1.72 cents to 225.40 cents/pound, and January feeders tanked by 1.85 to 217.50.

Hog futures are trading in decidedly mixed fashion. Hog traders seem less optimistic about short-term prospects in the wake of recent Chicago gains. Today’s big breakdown in cattle and feeder futures can’t be encouraging bulls either. October hogs dropped 0.82 cents to 106.27 cents/pound around midsession Thursday, while December sank 1.50 to 97.15.