Monday’s early export news was mixed for the corn market. The corn market started the week on a firm note despite less than supportive growing news. Bulls may have been anticipating the 136,000-tonne U.S. sale to Japan published by the USDA’s daily system. However, the weekly Export Inspections report was much less favorable and seemed to drag the market lower. March corn futures sagged 1.25 cents to $3.9375/bushel late Monday morning, while July dipped 1.25 to $4.0875.
Soy exports remain quite strong. In addition to the early-morning announcement of 130,000 tonnes of beans sold to Spain, the weekly USDA Export Inspections report stated the bean figure well above industry forecasts. Beans and meal responded well to those reports, but the oil market is mixed, thereby reflecting another round of energy market losses. January soybean futures surged 6.25 cents to $10.4225/bushel around midsession Monday, while January soyoil skidded 0.12 cents to 31.96 cents/pound, and January meal rallied $2.9 to $369.3/ton.
The wheat markets are following corn and beans higher. Little fresh news concerning wheat emerged over the weekend, with the main item being talk of improved Black Sea weather forecasts and less danger to wheat in that region. The Export Inspections report wasn’t very encouraging either. Nevertheless, golden grain prices followed their counterparts in the corn and bean pits higher. March CBOT wheat climbed 5.75 cents to $5.9975/bushel shortly before lunchtime Monday, while March KC wheat rose 6.5 cents to $6.4575/bushel and March MWE wheat advanced 6.5 cents to $6.295.
Big beef losses are weighing on cattle. Tumbling beef quotes apparently pulled cash and futures prices for fed cattle downward last week. The fact that select cutout tumbled again Friday afternoon seems to be weighing on CME prices to start this week’s trading, since that may bode ill for late-week cash market action. February live cattle dove 1.52 cents to 163.35 cents/pound in late Monday morning action, while April fell 1.17 to 163.12. January feeder cattle futures plunged 2.72 cents to 232.15 cents/pound and March feeders plummeted 3.00 to 228.22.
CME hogs are trading mostly lower as well. Last Friday’s afternoon reports indicated mixed cash and wholesale prices. Traders apparently worry that forthcoming hog and pork supplies will prove comparatively large. Moreover, they apparently fear that soaring pork costs at the wholesale and retail levels will also curtail demand. February hog futures slumped 0.40 cents to 85.22 cents/pound as the lunch hour loomed Monday, while June hogs sank 0.45 cents to 92.35.
Cotton remained slightly higher at midday Monday. Once again, little cotton news emerged over the weekend. India will reportedly ease export restrictions on its yarn, which might lead to greater usage, but the simple fact that most-active March futures held above their 10-day moving average at Friday’s close might be the main reason for the early-week rise. March cotton futures inched up 0.03 cents to 59.67 cents/pound just after noon (EST) Monday, while the July contract slipped 0.02 to 61.21.