Ag markets bounce from early-Monday lows
Corn futures seem to be posting a technical bounce. The ag markets started this week rather poorly as forecasts for favorable spring weather continued weighing on prices. The weekly Export Inspections report didn’t seem very supportive, but nearby futures bounced from early lows. Having futures rebound despite bearish expectations for the weekly Crop Progress report is rather impressive. July corn rallied 2.25 cents to $4.68/bushel Monday morning, while December lost 0.25 cents to $4.5725.
The Export Inspections report boosted nearby soy prices. Talk that current U.S. weather is enabling farmers to get soybeans planted in a very timely manner is dragging on new-crop CBOT soy futures to start this week. However, old crop bean and meal prices bounced after the weekly USDA Export Inspections report stated the latest figure above expectations. Demand remains robust. The latest Asian news indicates declining palm oil prices are still undercutting soyoil prices. July soybeans surged 11.5 cents to $15.0475/bushel around midsession Monday, while July soyoil dipped 0.08 cents to 38.42 cents/pound, and July soymeal rebounded $6.6 to $506.8/ton.
Weather news seems to be weighing on wheat markets. Wire service reports indicated drier weekend weather had allowed new crop spring-wheat plantings to accelerate. Other reports highlighted the lack of competitiveness of American wheat at this point, due largely to the fact that the U.S. is one of the few regions where conditions are less than ideal. July CBOT wheat futures fell 5.25 cents to $6.22/bushel late Monday morning, while July KCBT wheat slid 1.0 cents to $7.22 and July MWE futures dropped 4.75 cents to $7.0175.
Cattle futures are starting the week in mixed fashion. Profit-taking in the wake of last week’s rally seems to be weighing on the expiring June cattle future this morning, whereas the late-2014 contracts posted modest gains. Traders appear uncertain about likely cash/wholesale market direction from this point. August cattle rose 0.12 cents to 138.72 cents/pound as lunchtime loomed Monday, while December inched up 0.02 cents to 145.75. Meanwhile, August feeder cattle slipped 0.02 cents to 197.02 cents/pound, and October sank 0.30 to 198.12.
CME hogs bounced from early losses. Hog futures have recently suffered persistent losses from sizeable premiums over cash as spot hog and pork values disappointed traders. The losses continued in early trading, but traders apparently became more confident as the morning passes, since futures were trading around unchanged levels by late morning. August hog futures gained 0.10 cents to 124.87 cents/pound in late Monday morning action, but December sagged 0.07 to 94.72.
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