Ag futures seem likely to start the week with a bullish bias
Hog futures suffered a substantial breakdown late last week, which almost surely reflected ongoing weakness at both the cash and wholesale levels. However, the nearby contracts posted strong rebounds from early lows, thereby suggesting the recent decline had run its course and the market was set to reverse. We suspect CME futures will open at moderately higher levels this morning. April hogs ended Friday having slipped 0.07 cents to 84.25 cents/pound, while June rose 0.25 cents to 92.95.
Cotton futures sustained their late surge from last week into the early morning hours of Tuesday. As has so often been the case lately, thereby has been little real news concerning the white fiber market. On Monday afternoon the ICE exchange did publish the latest report on deliverable stocks; those jumped almost 20,000 bales, with another 72,937 awaiting inspection. Thus, the overnight advance suggests other considerations were in play. For example, the global supply situation looks relatively tight if one assumes massive Chinese government stockpiles will not be released in the foreseeable future. March cotton surged 0.54 cents higher at 81.86 cents/pound early Tuesday morning, while December gained 0.30 cents to 83.55.
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