Corn market reacted poorly to the Crop Progress data

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After lagging at a record-slow pace through early spring, corn plantings matched the fastest rate on record last week. Thus, the USDA Crop Progress report indicated that corn seedings are now 71% complete, whereas the industry was expecting a result in the 55%-65% range. That disparity caused the sizeable losses suffered overnight. July corn dove 12.75 cents to $6.3675/bushel early Tuesday morning, while December fell 6.75 cents to $5.135.

Continuing tightness of old crop supplies supported nearby soybean futures Monday and again in overnight trading. However, the progress made in planting new crop beans last week, as indicated on the Crop Progress report, as well as the stunning acceleration in corn plantings, apparently weighed upon new crop values overnight. We should probably expect more of the same during the Tuesday pit session. July soybean futures edged 0.25 cent lower to $14.6425/bushel as the sun rose over Chicago Tuesday, while July soyoil slipped 0.16 cents to 49.04 cents/pound, and July soybean meal inched up $0.6 to $435.9/ton.

The Crop Progress seemed to hold divergent implications for the wheat markets Monday afternoon. It showed the winter wheat crop deteriorated slightly from the week prior, whereas spring wheat plantings accelerated rather dramatically. Unfortunately for bullish interests, the negative implications of the speeding spring wheat results easily offset support for the winter wheat market. July CBOT wheat futures dropped 9.5 cents to $6.7575/bushel in early Tuesday morning action, while July KCBT wheat rallied tumbled 10.0 cents to $7.35, while July MGE futures sank 8.75 cents to $8.025.

After dipping in reaction to the monthly Cattle on Feed report Monday morning, cattle futures rallied later in the day. They continued the advance overnight despite a general lack of fresh news. Ultimately, the ongoing rise in wholesale values and the sizeable discounts already built into futures may be encouraging fresh optimism about short-term futures prospects. June cattle surged 0.65 cents to 120.77 cents/pound in early Tuesday trading, while December climbed 0.70 to 124.60. Meanwhile, overnight corn losses sparked buying in the feeder cattle pit; August feeders jumped 1.37 cents to 145.85 cents/pound, while November leapt 1.35 cents to 151.40.

Persistent cash and wholesale gains seemed to boost lean hog futures during the Monday CME session. However, concerns about a late-month slide as grocers concentrate on selling meat rather than buying it may have weighed upon prices overnight. The late afternoon pork report seemed to confirm short-term bearish ideas by declining significantly. June hog futures lost 0.12 cents to 91.95 cents/pound in early Tuesday morning electronic action, while December futures advanced 0.12 cents to 78.20.

U.S. cotton plantings were stated at 39% complete on the USDA Crop Progress report released Monday afternoon. That compares to year-ago and five-year average rates at 59% and 52%, respectively. However, that result apparently exceeded most expectations, as indicated by the modest futures losses suffered in overnight trading. The Tuesday morning combination of U.S. equity weakness and dollar strength may also have depressed white fiber values. July cotton dipped 0.28 cents to 85.50 early Tuesday morning, while December slid 0.13 cents to 85.47.

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