Internet problems delayed early Doane comments. The weekly USDA Export Sales report seemed supportive of corn futures. The old crop result, at 104,500 tonnes came in at the lower end of expectations, but the new crop figure, at 341,600 tonnes topped all published forecasts. However, the market seemed to suffer a reaction to its big Wednesday surge. July corn slipped 5.0 cents to $6.535/bushel early Thursday morning, while December slid 5.0 cents to $5.255.
Soybean futures also traded weakly Thursday morning despite seemingly bullish results on the USDA Export Sales report. Old crop sales reached 183,500 tonnes, while the top forecast was 100,000, and new crop sales netted 838,900 tonnes, easily topping the largest estimate at 450,000. Traders may simply think recent gains were overdone, and/or the big equity market reversal posted Wednesday may be weighing upon all most commodity markets. July soybean futures dipped 5.0 cents to $14.8925/bushel Thursday morning, while July soyoil lost 0.23 cents to 49.41 cents/pound, and July soybean meal skidded $3.4 to $437.2/ton.
The fact that wheat futures had not rallied as strongly as corn and beans lately may explain their relatively firm reaction to the weekly USDA Export Sales report. Both old and new crop wheat sales, at 239,000 and 713,600 tonnes, respectively, topped pre-report expectations, which then seemed to translate into rising prices. July CBOT wheat futures advanced 3.5 cents to $6.92/bushel in early Thursday trading, while July KCBT wheat added 3.75 to $7.47, and July MGE futures rose 2.25 cents to $8.10.
Cattle futures fell sharply Wednesday in reaction to news of lower cash market values. Thus, a modest Thursday morning rebound from those lows is not terribly surprising. The fact that choice beef cutout set another record high Wednesday afternoon also seems somewhat supportive. June cattle rose 0.25 cents to 120.25 cents/pound Thursday morning, while December dropped 0.15 to 124.17. Meanwhile, August feeder cattle futures edged 0.27 cents lower to 144.05 cents/pound, whereas November slid 0.50 to 149.35.
In contrast to the cattle market, hog futures surged Wednesday, then set back overnight. The big advance very likely reflected anticipation of continued seasonal strength, whereas the overnight decline almost surely marked a negative reaction to the monthly Cold Storage report, which stated ending-April pork stockpiles at an all-time high. June hog futures declined 0.60 cents to 93.95 cents/pound early Thursday morning, while December futures lost 0.35 cents to 79.15.
The weekly USDA Export Sales report seemed generally bearish for cotton futures. For example, the latest result, at 101,700 running bales, topped the week-prior figure by 37%, but it fell 45% below the previous four-week average. Shipments were also down from recent rates. New crop sales at 36,400 bales did not seem very impressive, but might explain the comparative strength exhibited by deferred futures. July cotton futures dipped 0.04 cents to 83.38 cents/pound Thursday morning, while December rallied 0.11 cents to 84.50.