Ag markets diverged significantly Tuesday morning
Corn futures continued rising Tuesday morning. Monday’s USDA reports proved supportive of the corn price outlook, thereby prompting substantial CBOT gains. The market kept rising Monday night, with bullish technical considerations and talk of rain-slowed Midwest plantings likely encouraging bulls as well. May corn climbed 8.5 cents to $5.105/bushel in Tuesday morning action, while December advanced 9.25 to $5.075.
Talk of supply tightness seems to be boosting the soy complex. Although Monday’s reports didn’t seem particularly bullish for the soy outlook, beans and meal posted sizeable gains. The oil market joined them in rising last night, with traders talk citing the tightness of the old crop situation. The nearby contracts are certainly leading the way higher. May soybeans soared 25.0 cents to $14.89/bushel late Tuesday morning, while May soyoil spiked 0.95 cents to 41.37 cents/pound, and May soymeal moved up $4.3 to $483.6/ton.
Weather news may be weighing upon wheat markets. Monday’s USDA data had little lasting impact upon wheat prices, with quotes at all three exchanges edging higher at the close. However, they reversed in overnight activity, with improved mid-April precipitation forecasts seemingly depressing sentiment. May CBOT wheat futures dove 9.75 cents to $6.875/bushel in late Tuesday morning trading, while May KCBT wheat futures tumbled 8.75 cent to $7.5525 and May MWE futures lost 7.75 cents to $7.35.
Wholesale weakness is still bothering cattle market bulls. Concerns about the wholesale outlook seemed to weigh upon CME cattle prices late last week and again Monday. Yesterday’s losses were much less substantial than those seen late last week, but they could hardly be seen as encouraging either. June cattle futures fell 1.30 cents to 136.20 cents/pound just before lunchtime Tuesday, while December sagged 0.82 cents to 139.42. Meanwhile, May feeder cattle tumbled 1.17 cents to 176.67 cents/pound, and August dropped 1.12 to 178.27.
Hog traders seemed to discount the Hogs & Pigs report Tuesday. The CME hog market held up rather well in response to the bearish data on last Friday’s quarterly USDA Hogs & Pigs report Monday. In fact, futures turned strongly higher this morning, which very likely reflected widespread industry suspicions that the USDA had over-counted the number of pigs on farms last month. June hog futures climbed 0.22 cents to 127.40 late Tuesday morning, while December gained 0.70 to 90.90.