Ag markets ended Monday in decidedly mixed fashion
The soybean market apparently sparked the late corn bounce Monday. After rising in concert with wheat futures Sunday night, corn futures followed golden grain values downward in morning trading. However, the weekly Export Inspections report, along with strong soybean gains brought the corn market back. December corn futures rose 1.75 cents to $4.44 at their Monday close, while May futures gained 3.0 cents to $4.6525/bushel
The Export Inspections boosted the soy complex. The weekly Export Inspections report stated the latest figure at 59.3 million bushels, whereas a result in the 42-45 million was expected. That surprisingly large result apparently sparked fresh soybean and meal buying. The meal bounce may also have spurred shifts by traders in the crush spreads, which in turn may have caused the surprising drop in oil values. November soybeans rallied 10.75 cents to $13.0325/bushel at close on Monday, while December soyoil skidded 0.05 cents to 41.64 cents/pound, and December soymeal gained $5.6 to $415.7/ton.
Global supply news sank the wheat markets. Recent talk of tight global supplies and surging exports had supported wheat futures. However, Argentine officials announced this morning that their current crop had easily topped prior forecasts. Their counterparts in Kazakhstan also stated their crop was larger than forecast by the USDA. The Export Inspections report also disappointed. December CBOT wheat tumbled 6.0 cents to $6.9975/bushel as trading wound down Monday, while December KCBT wheat fell 10.75 cents to $7.50, and December MGE futures dropped 8.50 to $7.515.
Cattle futures sagged in early-week trading. After suffering a stunning reversal in the wake of strong cash news last week, cattle futures had rebounded slightly this morning. But prices turned downward again Monday afternoon, which may reflect pessimism about the late-October outlook. December cattle futures settled down 0.10 cents at 131.90 cents/pound Monday afternoon, while April slid 0.12 cents to 134.65. Meanwhile, November feeder cattle fell 0.55 cents to 166.40 cents/pound, and January declined 0.27 cents to 166.42.
Anticipation of seasonal weakness may have depressed the hog market. While surprisingly small hog supplies have supported the whole hog and pork complex lately, that may change in the near future. The September USDA Hogs & Pigs report implied late-2013 hog supplies would average about 1% over year-ago rates. Such gains might exaggerate the markets’ historical tendency for late-year weakness. December hog futures closed 0.125 cents lower at 87.47 cents/pound, April was down 0.05 cents to 89.850.
Cotton futures turned lower Monday morning. Although the latest news from China seemed to support the cotton market Sunday night, ICE values turned modestly lower by late Monday morning. The drop may have marked a response to the latest exchange report on certificated stocks, which stated the weekly increase at 14,946 bales, which represented a 25.5% increase from last week. December cotton slid 0.05 cents to 83.06 cents/pound at their Monday afternoon settlement, while March sagged 0.08 to 84.25.