Beans, hogs diverged from weakness in the other ag markets
Demand and weather considerations are supporting corn futures. Although the weekly USDA Crop Progress report indicated corn plantings had surged last week, prospects for much slower rates this week are probably supporting deferred CBOT futures. Meanwhile, nearby futures seemingly reflect fresh talk of old-crop demand strength. July corn edged up 1.0 cent to $5.005/bushel Tuesday morning, while December rose 1.5 cents to $4.935.
Soybeans are rallying despite strong planting progress. The weekly report also indicated bean plantings had surged last week, but forthcoming rains are almost surely going to delay bean seedings as well. But, even more so than with corn, the domestic soy situation is quite tight, which is almost surely encouraging the buying being seen in Chicago today. July soybeans surged 16.5 cents to $14.8175/bushel in late Tuesday morning action, while July soyoil rallied 0.33 to 41.31 cents/pound, and July soymeal rallied $6.0 to $484.2/ton.
Wheat futures continue suffering from bearish global forecasts. Monday’s Crop Progress showed continued deterioration of the winter wheat crop, and lagging spring wheat plantings. Moreover, frost hit Colorado and western Kansas last night and is expected to do so again tonight. Yet futures are lower today. This very likely reflects pessimism about the long-term outlook due to the bearish data on last Friday’s USDA WASDE report. July CBOT wheat futures fell 9.25 cents to $7.0575/bushel around midsession Tuesday, while July KCBT wheat futures sank 3.5 cents to $8.21, and July MWE futures dipped 3.5 to $7.8725.
Traders seem pessimistic about this week’s cash cattle trade. Increasing fed cattle supplies typically undercut cash prices through the second quarter. Expectations to that effect are seemingly weighing on cattle futures today, since CME prices are already priced far below the country quotes posted last week. June cattle dropped 0.50 cents to 137.15 cents/pound late Tuesday morning, while December skidded 0.30 to 144.47. Meanwhile, August feeder cattle inched up 0.07 cents to 191.95 cents/pound, and October lost 0.12 cents to 192.47.
Cash strength likely sparked today’s early hog bounce. Mixed cash hog and pork values have affected CME swine futures lately. However, Chicago prices have apparently followed cash moves rather than those in pork values. Today’s early cash strength apparently translated into stronger CME quotes. June hog bounced 0.62 cents to 119.62 cents/pound around lunchtime Tuesday, while December slipped 0.02 to 94.05.
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