Demand based optimism seemed to support crop markets Thursday night. The relatively large CONAB forecast for Brazilian production apparently weighed on corn futures Thursday, but the yellow grain bounced in concert with the other crop markets overnight. Wire service sources cited optimism based on demand strength. Global markets appeared to breathe a sigh of relief after EU and Greek negotiators reached an accommodation, as indicated by the big U.S. dollar drop. March corn gained 0.75 cents to $3.8375/bushel early Friday morning, while July rose 1.0 to $3.9925.
The soy complex also appears to reflect robust demand ideas. The weekly Export Sales report indicated relatively strong sales once again Thursday. Traders may also have been reacting to yesterday’s U.S. dollar drop. Ultimately, these latest developments, as well as downward revisions to Brazilian production and export prospects, are apparently providing sustained support. March soybean futures rallied 3.0 cents to $9.8675/bushel Thursday night, while March soyoil dipped 0.10 cents to 31.91 cents/pound, and March meal edged $1.3 higher to $331.8/ton.
The wheat markets edged upward as well. Wheat futures decline in concert with corn Thursday, although the reason for the drop weren’t particularly obvious. Prices bounced modestly overnight, which makes one wonder if was a belated to yesterday’s big dollar drop and to news that Russian officials will not exempt wheat shipment to Egypt from their export tariffs; that suggests cheap Russian wheat is less likely to undercut the global market. March CBOT wheat inched up 0.25 cent to $5.215/bushel in pre-dawn Friday action, while March KC wheat added 0.25 cent to $5.5425/bushel, and March MWE wheat lifted 1.0 to $5.7525.
Wholesale strength probably boosted the cattle market Thursday. Cattle futures proved surprisingly weak Wednesday, especially when viewed within the context of substantial beef cutout gains posted later in the day. CME traders seemingly concluded the drop was overdone, since the Chicago market remained firm despite a disappointing beef quotes. The subsequent GLOBEX rise suggests traders expect steady-firm cash trading today. Overnight news that a ‘mad cow’ had been found in Canada might spark selling on today’s opening. April live cattle futures gained 0.02 cents to 151.12 cents/pound as Thursday’s CME session ended, while August cattle climbed 0.30 cents to 142.07 cents/pound. Meanwhile, March feeder cattle futures leapt 1.55 cents to 200.30 cents/pound and May feeders soared 2.07 to 200.35.
Bullish expectations may have boosted CME hogs Thursday. The pork market remained firm through the end of Wednesday’s trading, thereby seeming to spark a bounce that began in the GLOBEX session and resumed yesterday morning. Midsession spot quotes weren’t at all helpful, but futures seemingly ignored the negative news. Traders may have been looking forward to a spring rally, but afternoon spot market weakness seemingly bodes ill for today’s opening. April hog futures ended Thursday having climbed 0.67 cents to 64.50 cents/pound, while June hogs jumped 1.27 to 78.50.
Cotton traders also seem bullish about demand prospects. Although yesterday’s export results were weak, the underlying situation still seems supportive of the demand outlook. That is, Thursday’s combination of U.S. dollar weakness and equity market strength was suggestive of improved apparel buying on both the international and domestic markets. Wire service sources also point to strong mill buying at this point. March cotton futures climbed 0.09 cents to 62.57 cents/pound shortly after dawn Friday, while the July contract moved up 0.09 to 63.30.