Benevolent Midwestern Weather Pushes Grains & Soybeans Lower
Hog futures extended their steep fall on Thursday, ending at a fresh three-month low as a steady uptick in hog supplies coincides with a drop in pork exports.
Lean-hog futures for August slid 282 to 68.85. Most-active October futures dropped 185 to 59.20.
The selling in livestock futures spilled over to the cattle market on Thursday, ending a four-session winning streak.
Live-cattle futures for August dropped 62 to $113, Feeder-cattle futures for August declined 180 to $140.
Grain and soybean futures dropped Thursday as largely benevolent Midwest weather fueled expectations that U.S. farmers would reap bumper harvests in the fall.
Corn fell to a nearly 22-month low, weighed down by mounting anticipation that growers will collect a record crop this year thanks to good growing conditions across much of the Farm Belt. Meanwhile, soybeans declined after posting gains for two straight sessions as Midwest weather forecasts turned wetter, with rain added to the outlook in 6 to 10 days. Wheat also lowered, weighed down by falling corn prices and updated production forecasts from the London-based International Grains Council, which on Thursday raised its projection for global grain output to near-records.
September Corn slid 4 1/2 to $3.31, August soybeans fell 7 to $10.03, September Chicago wheat shed 4 1/2 to $4.10, and September KC wheat dropped 3 ½ to $4.09.
Cotton futures finished lower on Thursday with the October contract falling 81 to 73.02, and December new crop dropping 123 to 72.32.
Gold futures rose on Thursday, buoyed by the Federal Reserve’s decision to keep interest rates unchanged. August gold gained $6.30 to $1,333.00, and August silver closed at $20.21, up 24 cents.
Crude oil futures settled at three-month lows on Thursday, as unexpected growth in U.S. inventories kept downward pressure on the market.
September crude oil fell 78 cents to $41.14 a barrel, Gasoline futures settled down 1.5 cents to $1.30 a gallon, and Diesel futures settled down 2.5 cents, to $1.27 a gallon.
Natural gas prices advanced Thursday as weekly inventories rose less than expected, alleviating fears of a glut in U.S. supplies that had sent the fuel’s price lower in recent sessions. September nat gas gained 21.3 cents to $2.87.
Stocks on Wall Street mostly rose on Thursday in anticipation of results from tech heavyweights Alphabet and Amazon.com, while the yen eased after Reuters reported the Bank of Japan was considering expanding monetary stimulus to address signs of weak inflation. The Dow fell 15 to 18,456, the Nasdaq closed at 5,154, up 15 and the S&P 500 gained 3 to 2,170.