Dollar weakness seemed to boost the crop markets Tuesday morning. Bearish corn traders couldn’t mount a serious test of the market’s 2015 lows this morning, which probably sparked a wave of pragmatic buying. Moreover, a disappointing U.S. Retail Sales report and an IMF downgrade of its U.S. growth forecast hit the dollar, which apparently spurred corn buying as well. May corn futures bounced 2.25 cents to 3.7275/bushel as the lunch hour loomed Tuesday, while December rose 2.25 to $3.9825.
Talk of improved demand spurred buying in the soy complex. Although the concurrent corn rebound and U.S. dollar reversal probably encouraged bulls in the soy complex as well, wire service reports cited talk of improved demand for a portion of today’s early gains. Having the crude oil market built on its overnight advance probably encouraged soyoil bulls. May soybean futures climbed 8.5 cents to $9.6725/bushel in late Tuesday morning trading, while May soyoil rallied 0.27 cents to 31.31 cents/pound, and May meal added $3.3 to $312.1/ton.
Wheat futures stabilized. Conflicting winter and spring wheat results on Monday’s Crop Progress report didn’t keep bears from selling those markets overnight, which likely reflected forecasts for another round of southern Plains rainfall during the days ahead. Still, one has to suspect today’s big dollar drop helped stabilize the wheat markets above mid-morning lows. May CBOT wheat slid 3.75 cents to $4.985/bushel around midsession Tuesday, while May KC wheat sank 6.5 cents to $5.225/bushel, and May MWE wheat dropped 6.5 to $5.535.
Cattle futures vaulted from technical support. After cattle futures dove sharply in anticipation of cash losses last Friday, they posted a modest Monday rebound after an opening test of 40-day moving average support. That seemingly set the stage for today’s resurgence, which may reflect the simply fact that spot prices are high and may remain relatively elevated through much of spring. June cattle futures leapt 1.87 cents to 150.82 cents/pound just before lunchtime Tuesday, while August cattle jumped 1.72 to 148.55 cents/pound. Meanwhile, May feeder cattle futures surged 1.57 cents to 211.62 cents/pound, and August feeders soared 1.80 to 213.60.
Pork slippage may be undercutting CME hogs. Although the cash hog markets exhibited considerable strength late last week and again Monday, pork cutouts have moved sideways to lower. That lack of strength, as well as Monday’s seeming candlestick reversal signal, may explain the Chicago hog market’s inability to build upon recent gains this morning. June hog futures sagged 0.25 cents to 78.52 cents/pound late Tuesday morning, while December skidded 0.17 to 67.92.