Wheat markets are leading commodities higher Monday
Corn followed wheat higher Monday morning. Although forthcoming Corn Belt weather looks likely to spur corn planting and improve the potential of the fall harvest, spillover wheat strength have boosted yellow grain prices to start the week. Today’s Export Inspections data also implied robust demand, thereby spurring purchases as well. July corn rallied 9.0 cents to $5.085/bushel late Monday morning, while December moved up 5.5 cents to $4.995.
A private forecast of Brazilian production undercut the soy complex. Accelerating corn plantings may also mean the soy crop will be planted in timely fashion, which might produce a comparatively large crop next fall, but beans also gathered early support from surging wheat prices. However, a midmorning private industry estimate for Brazil’s current crop seemed to depress soy quotes. July soybeans dipped 4.0 cents to $14.6675/bushel in late Monday-morning action, while July soyoil dropped 0.25 cents to 41.26 cents/pound, and July soymeal skidded $0.1 to $480.3/ton.
Weather and war possibilities are again boosting the wheat markets. The southern Plains remain very dry and have now turned hot, which bodes ill for plants in that region. Moreover, the Black Sea situation is clearly deteriorating, thereby lowering productive potential for the region and boosting spring wheat prices. July CBOT wheat futures leapt 18.0 cents to $7.34/bushel in early Monday action, while July KCBT wheat futures jumped 16.25 cents to $8.38, and July MWE futures soared 17.75 to $7.9275.
CME cattle discounts reportedly encouraged cattle bulls this morning. Although cash cattle prices ended last week rather poorly, the summer CME contracts remain rather heavily discounted below spot values. Wire service sourced cited those differences as playing a role in today’s early Chicago strength. June cattle advanced 0.50 cents to 138.55 cents/pound shortly before lunchtime Monday, while December edged up 0.30 cents at 144.47. Meanwhile, August feeder cattle surged 1.02 cents to 191.35 cents/pound, and October gained 0.47 cents to 191.80.
Anticipation of seasonal strength may be supporting summer hogs. The CME lean hog index has moved consistently lower lately, thereby dragging the expiring May contract downward. However, traders rather obviously believe the market will turn decidedly higher during late spring and summer, so it wasn’t terribly surprising to see those contracts rallying Monday morning. June hog futures ran up 0.47 cents to 122.70 cents/pound late Monday morning, while December advanced 0.40 to 94.87.
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