Corn firmed in the wake of Tuesday’s breakdown. The USDA Grain Stocks and Prospective Plantings reports were bearish for corn futures, sending prices sharply lower yesterday afternoon. The market stabilized overnight, which may partially have reflected big corn tenders from two South Korean firms. May corn futures bounced 1.0 cent to $3.7725/bushel early Wednesday morning, while December edged 0.75 higher to $4.015.
The soy complex sustained Tuesday’s post-report strength. The USDA reports were interpreted as moderately bullish for the soybean and product markets, although concurrent crude and palm oil losses weighed on soyoil futures. That market joined beans and meal in rising overnight as the industry digested relatively low U.S. soybean stockpiles and surprisingly low planting intentions. May soybean futures climbed 4.25 cents to $9.775/bushel Tuesday night, while May soyoil rebounded 0.06 cents 30.46 cents/pound, and May meal rose $1.5 to $328.3/ton.
The wheat markets also rebounded from Tuesday’s dive. Wheat futures’ reaction to Tuesday’s USDA reports was most surprising, since prices dropped on what was generally seen as supportive news. Traders cited spillover selling from the corn market for much of the weakness. Given those developments, the modest overnight rebound seems quite reasonable. May CBOT wheat stalled at $5.1175/bushel in early Wednesday action, while May KC wheat rallied 2.0 cents to $5.6125/bushel, and May MWE wheat added 3.5 to $5.795.
Cattle futures turned lower Tuesday. Despite last Friday’s big cash market rise, nearby April futures slipped at Monday’s close and remained weak through the pit session. Deferred futures continued their moderate Monday advance in early trading, but turned lower in late morning action. Losses worsened in the afternoon, thereby seeming to reflect expectations for seasonal weakness. However, afternoon beef quotes surged, thereby implying a strong opening today. April cattle futures fell 1.17 cents to 161.32 cents/pound in closing Tuesday trading, while August cattle slumped 0.77 to 149.50 cents/pound. Meanwhile, April feeder cattle futures sank 0.50 cents to 218.12 cents/pound, and August feeders dipped 0.62 to 218.27.
CME hogs built on Monday’s comeback. Although last Friday’s USDA Hogs & Pigs report implied the pork industry will be very well supplied during the coming weeks and months, Chicago swine prices firmed to start this week. Deferred futures led the way higher after penetrating technical resistance at modestly higher levels this morning, then set back from the highs later in the day. Narrowly mixed afternoon spot quotes seemed to bode ill for today’s opening. April hog futures closed 1.12 cents higher at 62.42 cents/pound Tuesday, while June rose 0.25 to 75.80.
Cotton futures have posted a confused reaction to Tuesday’s data. The USDA Prospective Plantings report stated likely U.S. cotton acreage at 9.549 million acres, which would be the lowest total in six years. However, futures sagged in the wake of the report, only to rebound late in the day. Conversely, prices suffered significant losses last night, possibly reflected Tuesday’s big equity market slide and the subsequent follow-through in equity index futures. May cotton declined 0.30 cents to 62.80 cents/pound shortly after the sun rose over New York Wednesday, while December futures dropped 0.36 to 63.98.