Technical selling seemed to hit the corn market Monday morning. U.S. dollar strength seemed to weigh on corn futures Sunday night, but the greenback setback this morning. That fact, along with a strong result on the weekly Export Inspections report, seemed supportive of yellow grain prices. Nevertheless, futures turned decidedly lower, which may have reflected nearby futures’ recent failure at their 40-day moving averages. March corn futures fell 6.25 cents to $3.79/bushel late Monday morning, while July sank 6.0 to $3.945.
The soy complex continues turned lower by late morning. Underlying demand for soybeans and meal seemingly remains quite vigorous. Talk that a Brazilian trucker strike is preventing beans from flowing freely to ports may also be offering support. However, the soyoil situation remains bearish, especially with the crude oil market threatening to resume its January breakdown. Beans and meal couldn’t sustain early gains. March soybean futures slid 2.75 cents to $9.965/bushel just before lunchtime Monday, while March soyoil dropped 0.49 cents to 30.99 cents/pound, and March meal slipped $1.6 to $345.9/ton.
The wheat markets are also trading weakly. Wheat futures have recently found support from potential weather problems in the U.S. southern Plains and the Black Sea region. Today’s USDA Export Inspections report also seemed rather bullish, since the 501,548-tonne total easily topped expectations. Still, the glutted global situation remains a major obstacle to sustained strength, as apparently indicated by this morning’s generally slippage. March CBOT wheat slid 5.25 cents to $5.05/bushel in late Monday morning action, while March KC wheat skidded 1.5 to $5.3175/bushel, and March MWE wheat edged 1.75 lower to $5.65.
Cattle prices reacted rather weekly to the port news. Concerns about demand seemed to undercut the CME cattle market last week, with late-week cash slippage also spurring selling. The monthly Cattle on Feed report also looked somewhat bearish for deferred futures, but news of the West Coast labor settlement was expected to spark a bounce on today’s opening. The bounce was muted and futures turned weak by late morning. April cattle futures inched up 0.05 cents to 148.57 cents/pound as the lunch hour loomed Monday, while August cattle slumped 0.47 cents to 140.32 cents/pound. Meanwhile, March feeder cattle futures tumbled 0.77 cents to 198.40 cents/pound and May feeders lost 0.50 to 197.32.
Hog futures surged on the weekend port settlement. The spot markets for hogs and pork apparently stabilized last week, thereby seeming to set the stage for a bullish response to weekend news that the West Coast port labor situation had been resolved. Thus, futures rallied strongly on today’s opening, despite the fact that it will take weeks to clear up the logistic backlog out west. April hog futures soared 2.22 cents to 69.62 cents/pound in late Monday morning action, while June hogs leapt 1.62 to 83.35.