Corn futures continue struggling. The corn market seemed to follow wheat lower again last night, despite the price-friendly planting progress result on the weekly USDA Crop Progress report. That is, corn planting across the country is off to a slow start and seems likely to be further delayed by rainfall this week. In fact, nearby futures are threatening to drop to fresh 2015 lows. May corn futures slipped 0.25 cent to 3.7025/bushel Monday night, while December inched up 0.25 to $3.9625.
The soy complex rebounded from Monday’s lows. Little apparent news concerning soybeans and products emerged overnight, with the legume not yet qualifying for mention in the Crop Progress report. Little in South
America has changed. Oil was boosted by concerted crude and palm oil gains, but that hardly explains the concurrent meal advance. Traders may simply think the complex is technically oversold at current lows. May
soybean futures climbed 5.5 cents to $9.5425/bushel in early Tuesday trading, while May soyoil rose 0.08 cents to 31.12 cents/pound, and May meal added $2.4 to $311.2/ton.
Wet forecasts are still weighing on the wheat markets. Monday’s Crop Progress report indicated a deterioration of the U.S. winter wheat crop, but that news was offset by a quick start to spring wheat planting. Bulls
are also dealing with forecasts for more rainfall over the southern Plains in the days ahead, which seemed to undercut prices overnight. May CBOT wheat slid 3.25 cents to $4.99/bushel early Tuesday morning, while May KC wheat sank 5.25 cents to $5.2375/bushel, and May MWE wheat sagged 3.0 to $5.57.
Cattle futures had apparently anticipated Friday’s cash drop. Bearish cash expectations sent cattle futures tumbling Friday, with late-day trading, in which Nebraska quotes dove $5.00/cwt, seeming quite extreme. However, CME futures rebounded from post-opening lows, with most contracts actually moving into positive territory through the close. That suggests the market had fully anticipated the cash breakdown. Firm GLOBEX trading suggests a firm Tuesday morning opening. June cattle futures edged up 0.15 cents to 148.95 cents/pound as the CME pit session ended Monday, while August cattle climbed 0.27 to 146.82 cents/pound. Meanwhile, May feeder cattle futures gained 0.32 cents to 210.05 cents/pound, and August feeders moved up 0.35 to 211.80.
Summer hog futures seemed to break out to the upside Monday. Although pork quotes ended last week poorly, cash hog prices seemed to turn sharply higher last Friday. That boosted the expiring April contract despite its premium over spot values and pushed the most-active June future above major chart resistance. Sizeable Monday cash gains seemingly bode well for today’s opening as well. June hog futures closed 0.62 cents higher at
78.77 cents/pound Monday, while December slipped 0.15 to 68.10.
Lagging planting rates supported cotton Monday night. The USDA Crop Progress report stated cotton planting at 4% complete, thereby doubling the week-prior figure. However, that result lagged significantly behind
historical norms. Moreover, forecasts imply substantial rainfall over the next week, thereby suggesting a persistently slow pace and a smaller fall crop. May cotton rose 0.16 cents to 65.29 cents/pound shortly after
sunrise Tuesday, while December futures inched up 0.03 to 65.80.