Corn seemed to follow beans and meal higher Monday night. Little corn news emerged over the weekend, so yellow grain traders seemed to push prices higher in concert with gains in the soy and wheat complexes. Forthcoming action could get quite interesting since the most-active May contract is bumping up against chart and moving average resistance at the psychologically important $4.00 level. March corn gained 3.25 cents to $3.905/bushel early Tuesday morning, while July rose 3.0 to $4.0575.
Talk of strong demand is again supporting the soy complex. Soybeans and meal once again appear to rallying on underlying demand strength, with wire service sources citing both export and domestic buying. Asian palm weakness is again weighing on soyoil. There didn’t seem to be much actual news, but the industry is rather clearly expecting a bullish result on today’s monthly NOPA crush report. March soybean futures rallied 7.75 cents to $9.9825/bushel Monday night, while March soyoil sagged 0.03 cents to 32.37 cents/pound, and March meal moved up $4.0 to $336.3/ton.
Reduced Black Sea sales are reportedly boosting the wheat markets. The Russia-Ukraine conflict is apparently proceeding apace, which probably doesn’t bode particularly well for winter wheat crops. Meanwhile, shipments out of the region have slowed, thereby exerting diminished sales pressure at the lower end of the international market. March CBOT wheat surged 8.75 cents to $5.4175/bushel in early Tuesday trading, while March KC wheat climbed 9.5 cents to $5.7225/bushel, and March MWE wheat advanced 7.5 to $5.945.
Cattle futures rallied strongly last Friday. CME cattle traders essentially ignored Thursday night news that a Canadian cow had been found infected with ‘mad cow’ disease, since it’s rather obvious that there’s very little threat to the American beef supply. Instead, traders reacted to the idea that country cattle would once again trade well above the discounted levels built into CME futures. Indeed, Friday’s cash strength seemingly points to a firm opening today. April live cattle futures leapt 2.10 cents to 153.22 cents/pound in late Friday action, while August cattle jumped 1.92 cents to 144.00 cents/pound. Meanwhile, March feeder cattle futures spiked 3.55 cents to 203.85 cents/pound and May feeders soared 2.17 to 202.52.
Bullish expectations again seemed to boost CME hogs last Friday. The short-term hog/pork outlook still seemed less than promising last Friday, especially with a week-end work stoppage reportedly looming at West Coast ports. Nevertheless, deferred hog futures streaked upward Friday, which probably reflected anticipation of resurgent pork demand once the port situation ends. Spot prices firmed Monday, which bodes well for today’s opening. April hog futures bounded 1.52 cents higher to 66.02 cents/pound at Friday’s CME close, while June hogs surged 1.62 to 80.12.
Cotton set back in Monday night action. Even with the weekend being extended an extra day, minimal cotton news emerged over the weekend. joined Friday’s general advance. Stock index futures traded lower overnight, as did the U.S. dollar, thereby sending mixed signals to fiber traders. Ultimately, it seems as if the industry expects a soft tone this week. March cotton futures slid 0.21 cents to 62.49 cents/pound shortly after dawn Tuesday, while the July contract sank 0.21 to 63.31.