Grain markets stalled as the dollar bounced Tuesday night. The grain and soy markets surged Tuesday in response to a big drop in the value of the U.S. dollar, but quickly lost momentum when the greenback bounced overnight. Fine Corn Belt conditions are probably limiting bullish interested in the corn market, but bears may also find little traction with the pivotal mid-July pollination period looming in mid-July. July corn slipped 0.25 cent to $3.5875/bushel early Wednesday morning, and December lost 0.25 to $3.7575.
The soy complex quickly lost bullish momentum. The surprisingly slow planting progress on Monday’s Crop Progress report and yesterday’s dollar dive sent beans and meal sharply higher, but bulls apparently could do little to sustain the upward push overnight. The fact that Argentine product could be flowing back onto the global market may have hampered those efforts, as did the U.S. dollar bounce. Crude and palm oil slippage also weighed on soyoil values. July soybean futures dipped 2.0 cents to $9.3875/bushel Tuesday night, while July soyoil skidded 0.02 cents to 34.15 cents/pound, and July meal inched down $0.2 to $301.6/ton.
Cotton posted a belated Tuesday night bounce. Recent news on exports and crop conditions, as well as Tuesday’s U.S. dollar plunge had seemingly done little to boost fiber prices lately. However, ICE cotton did firm yesterday afternoon and built upon that base last night. The fact that the new-crop December contract held at the pivotal 64.00-cent level may have triggered buying from technical and pragmatic traders looking for a short-term advance. July cotton rallied 0.34 cents to 63.94 cents/pound in early Wednesday trading, December futures climbed 0.46 to 64.52.
Bears struggled to force discounted cattle futures lower Tuesday. Underlying beef demand seems firm despite greatly elevated wholesale prices, with last week’s stable cash trading sparking Monday’s CME gains. Mixed-lower beef action Monday afternoon and again at midday tended to encourage selling, but the fact that the various contracts remain well below last week’s cash quotes seemingly limited losses. Big afternoonbeef losses bode ill for today’s opening. August cattle futures ended Tuesday unchanged at 152.00 cents/pound, as did December at 154.90. Meanwhile, August feeder cattle futures fell 0.37 cents to 223.32 cents/pound, and November feeders slumped 0.47 to 219.30.
Profit-taking reportedly hit hog futures Tuesday. While CME hogs performed well Monday, they proved unable to break out above major chart resistance at modestly higher levels. That technical failure, as well as persistent ideas about short-term seasonal weakness seemed to spark long liquidation and short selling Tuesday morning. Mixed-lower spot market quotes Tuesday afternoon suggest early Wednesday weakness. August hog futures declined 0.90 cents to 82.47 cents/pound just before lunchtime Tuesday, while December sank 0.55 to 69.22.