Livestock and crop markets diverged Thursday morning.
Weather forecasts seemed to weigh on corn Thursday morning. Although the USDA Export Sales report indicated strong corn sales last week, yellow grain prices tumbled today. Sources blamed weak soybean numbers for general old-crop weakness, but talk of the potential for a planting window next week spurred new crop selling. July corn fell 8.0 cents to $5.11/bushel around midsession Thursday, while December lost 7.75 cents to $5.015.
The soy markets dropped sharply in response to the export data. U.S. export commitments actually declined slightly last week; and while that wasn’t unexpected, CBOT traders seemingly saw that as a sign to abandon old-crop longs. New crop prices also fell despite talk of accelerating corn plantings next week. July soybeans plummeted 33.25 cents to $14.795/bushel late Thursday morning, while July soyoil sank 0.53 cents to 41.58 cents/pound, and July soymeal plunged $11.1 to $482.6/ton.
Wheat futures suffered spillover losses. The current wheat situation looks less than promising, as reports from the Kansas wheat tour indicate. Forecasts for improved planting weather may have weighed on the Minneapolis market, but winter wheat fundamentals look bullish despite the unremarkable export report. Ultimately, it looks as if widespread long liquidation weighed heavily upon wheat futures. July CBOT wheat futures dove 13.75 cents to $7.0775/bushel by late Thursday morning, while July KCBT wheat futures slid 6.25 cents to $8.0625, and July MWE futures tumbled 9.0 to $7.5975.
Steady cash ideas seemed to spur cattle buying Thursday. Mixed wholesale quotes and bearish cash market expectations have generally weighed upon cattle futures this week. However, talk of a steady-firm result to this week’s cash trading appeared to spark across-the-board CME buying this morning. June cattle surged 1.22 cents to 137.30 cents/pound shortly before lunchtime Thursday, while December advanced 0.90 cents to 142.87. Meanwhile, August feeder cattle soared 2.42 cents to 189.90 cents/pound, and October leapt 2.02 cents to 190.00.
Hog futures benefited from the bullish cattle move. CME lean hog futures traded weakly in early Thursday action as negative technical developments seemed to overrule supportive Wednesday afternoon reports. However, the bullish implications of today’s cattle market action seemed to spur fresh buying in the swine pit. June hog futures rallied 0.07 cents to 123.20 cents/pound late Thursday morning, while December jumped 0.60 to 93.10.
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