Ag markets posted a mixed showing again Monday night
Corn futures sustained their Monday advance overnight. The USDA’s Grain Stocks and Prospective Plantings reports proved supportive of the corn price outlook, thereby prompting substantial CBOT gains. The market kept rising Monday night, with bullish technical considerations likely encouraging bulls as well. May corn climbed 4.5 cents to $5.065/bushel early Tuesday morning, while December advanced 4.75 to $5.03.
Talk of supply tightness seemed to boost 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 sketchy reports citing the tightness of the old crop situation. The nearby contracts did lead the way higher. May soybeans jumped 14.5 cents to $14.785/bushel in predawn Tuesday action, while May soyoil rose 0.25 cents to 40.67 cents/pound, and May soymeal ran up $4.4 to $483.7/ton.
Weather news may be weighing upon wheat markets Monday night. Monday’s USDA data proved to have little lasting impact upon wheat prices, with prices at all three exchanges edging higher at the end of the day. However, they reversed in overnight activity, with improved mid-April precipitation forecasts seemingly depressing sentiment. May CBOT wheat futures sank 6.0 cents to $6.9125/bushel in early Tuesday trading, while May KCBT wheat futures slumped 5.75 cent to $7.5825 and May MWE futures lost 4.0 cents to $7.3875.
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 slid 0.47 cents to 137.02 cents/pound as Tuesday dawned over Chicago, while December sagged 0.30 cents to 139.95. Meanwhile, May feeder cattle tumbled 0.50 cents to 177.35 cents/pound, and August fell 0.30 to 179.10.
Mixed cash and pork news stifled hog moves Monday night. After holding up rather well in the face of the bearish data on last Friday’s quarterly USDA Hogs & Pigs report, hog futures are narrowly mixed this morning. That apparently reflects late Monday reports indicating cash weakness and wholesale strength. We expect those factors to continue driving the market. June hog futures skidded 0.02 cents to 127.17 early Tuesday morning, while December gained 0.55 to 90.75.
Cotton futures may be suffering from pragmatic selling. Monday’s USDA planting forecast seemed supportive of the cotton outlook, since the result came in well below industry forecasts. Some reports suggest pessimism about forthcoming Chinese demand undercut prices overnight, but the fact that bulls couldn’t mount a bullish ICE reaction to the USDA data probably sparked active selling from pragmatic traders. May cotton dove 1.46 cents to 92.06 cents/pound just after sunrise (EDT) Tuesday, while December cotton dropped 0.56 to 79.44.
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