Dollar slippage may be supporting corn futures. Little fresh news concerning corn emerged Monday night, which seemingly encouraged bullish traders to push prices higher. The dollar continued its Monday slide, thereby seeming to encourage commodity bulls. March futures are still bumping up against their 10-day moving average and technicians may be looking for a follow-through rise if it’s penetrated. March corn rose 1.75 cents to $3.8575/bushel early Tuesday morning, while July added 1.5 to $4.015.
The soy complex is trading generally mixed. Soybean and meal prices are seemingly caught between bullish demand and bearish supply forces at the moment. Bulls appeared to gain the upper hand early this morning. Asian palm oil prices rebounded from several days of losses, thereby supporting soyoil values as well. March soybean futures inched up 0.25 cent to $9.8375/bushel Monday night, while March soyoil gained 0.10 to 31.18 cents/pound, and March meal lifted $0.8 to $339.7/ton.
The wheat markets moved mostly lower Monday night. The global wheat markets are very well supplied and will probably remain so for the foreseeable future. Although the dollar declined farther overnight, news of slipping European quotes seeming did more to undermine the relatively elevated U.S. markets. March CBOT wheat edged up 0.75 cents to $5.2125/bushel as Tuesday dawned over Chicago, while March KC wheat sagged 1.0 cent to $5.535/bushel, and March MWE wheat skidded 0.25 to $5.6875.
Cattle futures came back from early Monday lows. Although last Friday’s monthly Cattle on Feed report looked modestly bullish, cattle futures dove on Monday’s opening. That probably reflected Friday’s big wholesale losses and industry worries about more of the same. However, futures staged an impressive bounce from the early lows, which reportedly reflected widespread short-covering. Conversely, beef price dove yesterday afternoon, which may spur fresh selling today. February live cattle futures closed down 0.52 cents at 149.82 cents/pound Monday, while April cattle fell 0.80 cents to 148.00. January feeder cattle futures plunged 2.05 cents to 211.65, and March feeders dove 1.85 to 199.97.
CME hogs posted a sharp Monday rebound. The cash hog and pork markets posted modest losses last Friday, but those looked quite minimal when compared to the futures breakdown posted late last week. Futures rebounded yesterday as a result, with buyers likely suspecting hog supplies will diminish as well. Afternoon spot quotes were mixed to weak, so we expect a similar CME opening. February hog futures ended Monday having jumped 1.52 cents to 70.82 cents/pound, while June hogs leapt 2.07 cents to 82.20.
Cotton set back from Monday’s highs. The fiber market posted an impressive rally yesterday, which rendered doubly so by the lack of supportive news. Wire service sources cited short-covering for the advance, while we give partial credit to concurrent equity strength. Conversely, last night’s setback wasn’t terribly surprising in that context, especially with equity index futures suggesting a big stock market drop this morning. March cotton futures slipped 0.09 cents to 58.53 cents/pound shortly after sunrise Tuesday, while the July contract sank 0.26 to 60.04.