Corn continues following wheat. Corn futures have shifted direction with wheat futures lately, with the overnight golden grain decline apparently dragging the feed grain lower as well. Monday’s midsession reversal also seemed to represent a technical failure, thereby potentially presaging further short-term losses. May corn futures slipped 0.25 cent to $3.8475/bushel Monday night, while December lost 0.25 to $4.095.
The soy complex moved unanimously lower overnight. Soybean news has been sparse lately, so growing South American supplies, an overnight rebound in the value of the U.S. dollar and weakness spilling over from the grain pits seemed to depress soy values. Concurrent crude and palm oil prices rather clearly weighed on soyoil quotes as well. May soybean futures sank 3.25 cents to $9.7525/bushel early Tuesday morning, while May soyoil slid 0.11 cents to 31.15 cents/pound, and May meal skidded $0.2 to $322.8/ton.
Talk of improved weather is weighing on the wheat markets. Recent dryness had powered significant gains in wheat futures as traders worried about the size of the winter wheat crop. However, forecasts for the weather over the next 1-2 weeks implied much improved precipitation over the central U.S. and in the Black Sea region, which in turn sent wheat prices tumbling. The apparent failure at chart resistance (e.g. around the $5.40 level on the May CBOT chart) also holds bearish connotations. May CBOT wheat sagged 4.25 cents to $5.235/bushel in early Tuesday trading, while May KC wheat drooped 4.0 cents to $5.68/bushel, and May MWE wheat sank 3.0 to $5.8675.
Cattle futures couldn’t sustain their early surge. Fed cattle reportedly traded actively at $168/cwt (cents/pound) in Nebraska last Friday. That $3 weekly rise almost surely triggered today’s strong CME opening. However, futures set back sharply from their early highs, thereby reflecting industry expectations for a big seasonal setback during late spring and early summer. June cattle futures plunged 1.62 cents to 151.75 cents/pound at Monday’s CME settlement, while August cattle dove 1.52 to 148.30 cents/pound. Meanwhile, May feeder cattle futures slumped 0.57 cents to 216.87 cents/pound, and August feeders tumbled 0.80 to 217.75.
Wholesale expectations probably affected CME hogs. Pork demand seems depressed at this point, which made Friday afternoon news of sizeable pork price gains rather impressive. However, doubts about short-term buying seemed to undercut the expiring April contract, whereas optimism about late-spring and summer prospects apparently boosted deferred futures. June hog futures settled 0.90 cents higher at 76.60 cents/pound Monday, while December climbed 0.77 to 67.47.
Indian news may have sparked Monday’s cotton gains. A report from the USDA’s India attaché, who published an Indian cotton production estimate about 1.0 million tonnes below the latest official quote from the USDA, may partially explain today’s early fiber market strength. The equity indexes also shrugged offer early losses, thereby suggesting firm apparel demand in mid-2015. A respected industry analyst reportedly issued a bullish report today as well. May cotton jumped 1.65 cents to 65.34 cents/pound as New York trading ended Monday, while December futures rose 0.38 to 64.92.