Soybean Prices Drop Amid Favorable Weather, China Demand Concerns

A recent drop in condition ratings for corn and soybeans led to lower prices, but weather forecasts pointing to timely precipitation quickly reversed the trend. Soybean futures were particularly affected by favorable weather conditions heading into the crucial August growing period.

Lackluster China demand also weighed on soybean prices. Wheat futures felt pressure from the situation, but the ongoing conflict between Russia and Ukraine, which has threatened export flows out of the Black Sea region, helped to insulate them.

Cattle futures may have bottomed after the USDA announced plans to reopen the southern border to Mexican imports. Lean hog futures hit a three-week low alongside signs that a cash rally is stalling out.