The weekly Crop Progress report likely triggered short-covering Monday night. The report indicated good farmer progress in getting the corn crop in the ground, but the result fell slightly below industry expectations. That, along with surprisingly weak wheat and soy results appeared to spur broad short-covering in overnight action. July corn bounced 1.25 cents to $4.785/bushel early Tuesday morning, while December rose 1.5 cents to $4.7725.
The soy complex moved mostly higher last night. Farmers made good progress in getting soybeans planted last week, but the result indicated on Monday’s report fell modestly below the mean industry forecast. That news, along with signs of old-crop demand strength boosted bean and meal futures, whereas continued Asian palm declines weighed on the soyoil market. July soybeans rallied 7.5 cents to $14.9275/bushel soon after dawn Tuesday, while July soyoil slid 0.14 cents to 40.28 cents/pound, and July soymeal advanced $4.0 to $494.5/ton.
Poor condition/progress ratings boosted the wheat markets. Despite improving moisture conditions in the southern Plains, winter wheat crop conditions declined again last week. Moreover, planting progress in the northern Plains fell short of expectations. Thus, it isn’t at all surprising to see wheat futures rebounding strongly this morning, especially in light of recent losses. July CBOT wheat futures gained 8.25 cents to $6.8275/bushel in early Tuesday action, while July KCBT wheat futures climbed 11.75 cents to $7.805, and July MWE futures surged 12.0 cents to $7.5075.
Cattle futures seemed to pause in the wake of Monday’s big rally. Strong beef gains seemingly triggered strong fund buying of cattle futures Monday. Sizeable discounts already built into summer futures probably rendered the market amenable to the surge. However, the nearby June contract proved unable to top its April high, which in turn seemed to cause an overnight setback. June cattle slipped 0.12 cents to 139.27 cents/pound as Tuesday dawned over Chicago, while December skidded 0.05 to 146.40. Meanwhile, August feeder cattle edged up 0.27 cents to 196.47 cents/pound, but October sagged 0.05 cents to 197.32.
General cash and pork strength is apparently supporting hog futures. The hog market apparently benefited from strength spilling over from the cattle pit Monday, which in turn probably encouraged technical buying. The fact that cash hog values rose modestly Monday, as did pork cutout, probably sparked the modest follow-through gains posted overnight. June hog futures gained 0.22 cents to 119.60 cents/pound early Tuesday morning, and December inched up 0.02 cents to 94.37.
Cotton futures seemed to gather spillover support Monday night. The weekly Crop Progress report indicated farmers had accelerated cotton plantings last week, with the latest figure, at 46% complete, was only slightly below the five-year average. That wasn’t terribly encouraging for bulls, but ICE fiber prices rebounded nonetheless. July cotton ran up 0.32 cents to 89.47 cents/pound shortly after sunrise Tuesday, while December cotton rose 0.11 to 82.16.