Corn futures continued sliding Monday night. The corn market slipped yesterday despite supportive financial market developments. That probably reflected the disappointing result on the weekly USDA Export Inspections report. Indeed, that weakness persisted overnight, with concurrent soybean losses likely adding to the gloom. Wheat firmness may have limited the decline. May corn futures slid 1.75 cents to $3.7725/bushel in early Tuesday trading, while December lost 1.5 to $4.0275.
Soy traders seem to looking toward the Prospective Plantings report. South America’s ongoing soybean harvest promises to be huge, which has undercut global prices lately. But wire service sources are also discussing the potential for a sizeable increase in domestic plantings as well, so they’re looking forward to the March 31 USDA Prospective Plantings report. Strong demand is still supporting meal, but losses in the energy and vegoil sectors are again depressing soyoil quotes. May soybean futures sagged 3.0 cents to $9.6625/bushel Monday night, while May soyoil dropped 0.27 cents to 30.12 cents/pound, and May meal skidded $0.3 to $323.4/ton.
Talk of potential dryness offered persistent support for wheat. Wire services cited growing dryness in the southern Plains as temperatures warmed for Monday’s sizeable wheat gains. The same buzz supported prices overnight. Traders may also be reacting reports of Russian financing problems, as well rumors of similar dryness in their spring wheat region. May CBOT wheat slipped 0.25 cent to $5.1375/bushel early Tuesday morning, but May KC wheat gained 1.5 cents to $5.565/bushel, and May MWE wheat rose 1.0 to $5.82.
Cattle futures traded weakly Monday. Last Friday’s combination of U.S. dollar strength and stock losses depressed the commodity sector, with talk of flat cash trading apparently adding to the selling in the cattle pit. Despite some reports of late-day strength, industry disappointment with the results seemed to spill over into Monday’s trading. Conversely, afternoon wholesale gains may support prices on today’s opening. April cattle futures fell 1.07 cents to 153.20 cents/pound at Monday’s CME close, while August cattle declined 0.35 cents to 142.27 cents/pound. Meanwhile, April feeder cattle futures plunged 1.17 cents to 210.05 cents/pound, and August feeders dropped 0.95 to 210.25.
Rebounding pork prices supported hog futures Monday. Friday’s financial market action exaggerated pork demand fears; weakness at the cash and wholesale levels wasn’t encouraging either. The latter news weighed on early-Monday trading, but resurgent pork quotes apparently boosted futures at midsession, since warming weather might easily boost pork demand. Afternoon pork quotes weren’t as strong, thereby suggesting early-Tuesday slippage. April hog futures edged up 0.10 cents to 62.22 cents/pound at their Monday close, while June hogs gained 0.82 to 76.25.
Chinese news seemingly boosted cotton Monday night. Recent U.S. dollar strength has apparently depressed cotton futures by reducing export prospects. The fact that ICE bulls couldn’t take advantage of Monday’s greenback decline wasn’t encouraging either. However, prices did rebound modestly overnight, thereby marking a reaction to a report that Chinese officials hope to elicit reduced 2015 cotton production amid sluggish demand and monstrous government stockpiles. May cotton rallied 0.13 cents to 60.62 cents/pound as Tuesday dawned over New York, while December futures bounced 0.21 to 62.77.