Corn futures were mixed Tuesday night. Little fresh corn news emerged last night, which may be one reason CBOT futures were narrowly mixed. The nearby contracts declined, which may have reflected suspicions of diminishing demand, whereas talk of accelerating Corn Belt plantings likely weighed upon new crop prices. May corn slipped 0.5 cent to $4.9575/bushel early Wednesday morning, while December inched up 0.75 to $4.965.
Talk of growing bean imports is depressing the soy complex. Wire service reports indicate two cargoes of Brazilian beans previously headed for Japan have been diverted toward the U.S., thereby seeming to confirm talk of increased American imports. Oil prices dipped in concert with Asian palm losses. May soybeans fell 7.0 cents to $14.7275/bushel in early Wednesday action, while May soyoil skidded 0.14 cents to 42.61 cents/pound, and May soymeal lost $1.1 to $478.7/ton.
Anticipation of improved U.S. conditions undercut the wheat markets. Although the Black Sea situation remains tense, chatter concerning improving moisture conditions across the Great Plains seemed to come to the fore in overnight action. Wheat prices moved mostly lower. May CBOT wheat futures slumped 4.0 cents to $6.69/bushel Tuesday night, while May KCBT wheat futures dropped 4.0 cents to $7.3725, and May MWE futures slid 5.75 to $7.145.
Technicians may have sold cattle overnight. Surprisingly large beef gains posted early this week seemed to spur strong buying in the cattle pit Tuesday. However, the market reversed in overnight action, with the June contract’s apparent failure at technical resistance and anticipation of seasonal weakness likely playing roles in the drop. June cattle futures dove 0.52 cents to 134.45 cents/pound as CME trading accelerated Wednesday, while December tumbled 0.40 cents to 140.05. Meanwhile, May feeder cattle edged up 0.02 cents to 178.37 cents/pound, but August slipped 0.10 to 182.17.
Hog traders seem to be reacting to Tuesday’s wholesale losses. Although the cash hog markets came in steady Tuesday afternoon, pork news wasn’t as friendly. That is, despite seemingly bullish results on the monthly Cold Storage report, pork cutout fell sharply yesterday, thereby seeming to confirm suggestions that the first-quarter rally was hugely overdone. June hog futures sank 0.27 cents to 122.97 cents/pound as Wednesday dawned in Chicago, while December stalled at 88.87.
Improving planting prospects may also be weighing on cotton futures. Ideas that forthcoming weather will prove quite conducive to active plantings and a good start for crops in the Southeast may be depressing cotton futures at this point. Conversely, persistent Texas dryness seems likely to limit short-term losses. May cotton sagged 0.26 cents to 90.75 cents/pound soon after sunrise (EDT) Wednesday, while December cotton dipped 0.29 to 82.20.