Planting prospects may have supported corn futures Tuesday. Dipping soybean and wheat prices probably weighed on corn futures today, with bears also encouraged by talk of active farmer selling. However, yellow grain values exhibited considerable strength, which may mark a response to forecasts for a reduced Ukrainian crop and diminished U.S. plantings as well. May corn futures ended Tuesday having risen 3.0 cents to $3.9253/bushel, while December corn edged 3.0 higher to $4.1725.
The soy complex set back from technical resistance. Monday’s sizeable soy gains were impressive, especially when one considers the time of year and the flow of South American beans and products to the global market. But the rally left nearby futures facing significant technical resistance. Today’s bounce in the value of the U.S. dollar and concurrent equity slippage may also have depressed prices. May soybean futures skidded 1.75 cents to $9.8175/bushel in late Tuesday trading, while May soyoil slipped 0.04 cents to 31.11 cents/pound, and May meal sagged $1.0 to $326.3/ton.
State wheat ratings probably triggered wheat selling. Recent talk of southern Plains dryness likely had traders thinking Monday’s state condition reports on winter wheat would come in lower, but readings for Texas and Oklahoma showed big improvements. Monday’s futures setbacks from early highs may also have sparked technical selling. Longer-term forecasts also imply widespread Plains precipitation next month. May CBOT wheat fell 10.5 cents to $5.235/bushel as Tuesday’s session ended, while May KC wheat tumbled 9.25 cents to $5.6525/bushel, and May MWE wheat sank 8.25 to $5.8175.
Rising wholesale prices seemed to boost cattle futures Tuesday afternoon. Cash market gains powered Monday’s big cattle rally, with afternoon beef gains also seeming quite supportive. CME prices turned mixed to lower this morning, but moved generally higher after midday beef quotes again rose significantly. April cattle futures rallied 0.65 cents to 162.00 cents/pound in late Tuesday trading, while August cattle inched up 0.10 at 150.32 cents/pound. Meanwhile, April feeder cattle futures lost 0.25 cents to 218.92 cents/pound, and August feeders dropped 0.42 to 219.25.
Deferred hog futures staged a Tuesday rebound. Monday’s USDA Cold Storage report indicated a big February jump in U.S. pork supplies, which was generally anticipated due to the West Coast port situation. Futures proved quite volatile in early trading, with deferred contracts turning generally higher later in the day. That probably reflected reports of firming pork prices and fund position rolling. April hog futures stumbled 0.65 cents to 58.60 cents/pound at Tuesday’s CME settlement, while June hogs surged 1.05 to 74.67.