Ag markets were mixed again Thursday night

Corn futures seemed to follow wheat lower Thursday night. Some wire service reports suggest that China's latest cancellation of corn imports over non-approved GMO content depressed prices last night, but that seems like old news. On the other hand, the same rainfall and precipitation forecasts weighing upon wheat futures may also be undercutting corn. May corn slid 3.5 cents to $4.965/bushel early Friday morning, while December sagged 2.0 to $4.995.

The tight supply situation is seemingly supporting the soy complex. The growing seasonal tightness of the domestic situation is probably supporting old crop soy values at this point. But the fact that new crop gains matched the nearbys overnight may reflect weather optimism. That is, traders appear to think spring plantings won't be delayed, which might limit bean plantings. May soybeans climbed 3.25 cents to $14.785/bushel Thursday night, while May soyoil surged 0.37 cents to 42.04 cents/pound, and May soymeal slipped $1.2 to $478.9/ton.

The latest weather forecasts again appeared to depress wheat markets. Although the latest weather forecasts didn't seem particularly promising on the moisture front, wheat futures posted across-the-board losses overnight. Wire service reports cited improved weather for the drop, but we suspect a significant technical component to the selling as well. May CBOT wheat futures fell 9.5 cents to $6.665/bushel in early Friday trading, while May KCBT wheat futures dropped 11.75 cents to $7.3225 and May MWE futures tumbled 9.0 cents to $7.215.

Cattle futures were mixed to lower in overnight action. Events of the past few days seemingly encouraged CME traders to anticipate relatively firm cash values later today, thereby encouraging traders to buy discounted nearby futures. However, Thursday's late beef quotes suffered surprisingly large losses, which probably explains the overnight weakness. June cattle futures sank 0.17 cents to 137.20 cents/pound in predawn Friday action, while December stumbled 0.30 to 140.62. Meanwhile, May feeder cattle rose 0.05 cents to 180.20 cents/pound, but August skidded 0.15 to 181.67.

Big wholesale losses are undercutting hogs. Cash hog quotes proved surprisingly firm Thursday afternoon. However, pork cutout values plummeted, which, if continued, could greatly weigh upon the whole hog and pork complex. That news almost surely caused the overnight CME drop. June hog futures dove 1.15 cents to 122.40 cents/pound Thursday night, while December plunged 1.02 to 90.47.

Attaché reports may have boosted cotton futures Thursday night. The cotton market continued its recent decline Thursday, with disappointing export news causing the drop. However, the latest attaché reports concerning Egypt and India were released yesterday afternoon, with both reports seeming somewhat supportive of the global fiber outlook. May cotton bounced 0.42 cents to 91.40 cents/pound soon after dawn Friday, while December cotton gained 0.39 to 79.83.


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