Corn futures couldn’t sustain their early-week advance. CBOT corn prices continued their bullish response to last Friday’s bullish USDA data Sunday night, but proved unable to sustain the upward momentum this morning. Talk of diminished domestic demand, as well as the disappointing Export Inspections report seemingly weighed on the market. March corn futures were unchanged at $4.3275/bushel around midsession Monday, while May skidded 0.25 to $4.405/bushel.
The soy complex rebounded from early lows. Soybeans and products traded weakly in early Monday action, but beans and meal turned upward in reaction to supportive export news. s the morning passed. Export news likely powered the bounce. The USDA announced that exporters had sold 140,000 tonnes of beans to ‘unknown destinations’ early this morning; that news was followed by a strong result on the weekly Export Inspections report. The Asian palm market is weighing on oil values. March soybeans bounced 8.5 cents to $12.875/bushel in late Monday morning trading, while March soyoil fell 0.42 cents to 37.81 cents/pound, and March soymeal rallied $5.0 to $418.6/ton.
The wheat markets rebounded from Friday’s lows. Wheat futures reacted badly to last Friday’s data indicating the December stocks total and the 2013/14 carryout figure topped expectations. News that Egypt is buying 55,000 tonnes of U.S. grain for February delivery seemed to boost early-week buying, as did the supportive result of the Export Inspections report. March CBOT wheat futures climbed 4.5 cents to $5.735/bushel by late Monday morning, but March KCBT wheat futures skidded 1.0 cent to $6.25, and March MWE futures edged up 1.0 to $6.215.
A technical failure seems to be weighing upon cattle futures. The cash cattle and wholesale beef markets have surged to record highs, which seemingly boded well for this week’s CME cattle outlook. However, nearby futures failed to break out to fresh highs in early trading, thereby prompting active selling. February cattle futures sagged 0.15 cents to 136.55 cents/pound just before lunchtime Monday, but April futures inched up 0.02 to 137.00. Meanwhile, March feeder cattle futures tumbled 0.92 cents to 166.72 cents/pound, and May sank 0.65 to 168.25.
Hog futures also proved surprisingly weak Monday morning. Ideas that the hog market is set for a technical and seasonal rally have been encouraged by concurrent cattle and beef strength. However, swine traders seemed to be reassessing the situation in light of the early cattle reversal. February hogs slumped 0.27 cents to 85.55 cents/pound late Monday morning, while June dropped 0.30 to 100.60.