Sorghum news may be supporting corn futures. The U.S. dollar remained very strong Thursday morning, thereby tended to exert downward pressure upon the crop markets. The weekly USDA Export Sales report seemed somewhat supportive of the corn market, but one has to wonder if early news of a 108,000-tonne sorghum sale to an unknown destination is encouraging corn bulls as well. May corn futures rallied 2.75 cents to $3.925/bushel late Thursday morning, while December rose 2.25 to $4.16.
Soy meal prices proved surprisingly firm Thursday morning. As with the grains, the soy results of the Export Sales report were decent but not outstanding, which apparently weighed on Chicago prices. Talk of flat soy quotes at Gulf ports seemingly supported the meal market. Big overnight palm oil losses are depressing soyoil, with beans also appearing to feel downward pressure. May soybean futures slumped 5.75 cents to $9.8875/bushel around midsession Thursday, while May soyoil dropped 0.47 cents to 31.74 cents/pound, and May meal slipped $0.3 to $326.8/ton.
The wheat markets have continued Wednesday’s decline. Ongoing U.S. dollar gains are very likely hurting wheat export prospects, especially with the golden grain already viewed as being comparatively expensive on global markets. The FAO also boosted its global wheat and cereal production and carryout forecasts overnight, thereby adding to the selling pressure. The Export Sales result seemingly did little to half the slide. May CBOT wheat fell 12.0 cents to $4.84/bushel as the lunch hour loomed Thursday, while May KC wheat dipped 7.5 cents to $5.1975/bushel, and May MWE wheat sank 4.25 to $5.615.
Cattle futures struggled after opening strongly. As expected, cattle futures opened sharply higher in the wake of Wednesday’s big advance. However, bulls could sustain gains in only the nearby April contract, thereby suggesting the industry remains quite doubtful of beef demand strength this spring and summer. April cattle futures climbed 0.32 cents to 154.37 cents/pound in late Thursday morning action, while August cattle skidded 0.30 cents to 144.07 cents/pound. Meanwhile, April feeder cattle futures jumped 1.22 cents to 205.60 cents/pound, and August feeders vaulted 1.12 to 206.50.
CME hogs also struggled Thursday morning. Wednesday’s rally in nearby April hog futures was impressive, since it suggested renewed industry optimism despite recent spot results. Bulls proved unable to build upon the rally this morning, which once again seemed to reflect mixed cash calls and doubts about demand strength. April hog futures sagged 0.45 cents to 67.55 cents/pound shortly before lunchtime Thursday, while June hogs tumbled 0.87 to 80.67.