Export Sales disappointed corn traders. The financial markets reversed a big portion of Wednesday’s stock market surge and concurrent U.S. dollar dive, which probably accounts for a portion of the crop market weakness seen this morning. But the weekly USDA Export Sales report was probably the main driver of the corn drop, since sales were comparatively slow. May corn futures slumped 3.0 cents at $3.7175/bushel as the lunch hour loomed Thursday, while December dipped 2.25 to $3.9775.
The soy complex turned mixed around midmorning Thursday. Soybean and product futures couldn’t sustain yesterday’s bullish momentum as stocks set back and the dollar bounced this morning. The export data was also less than helpful. Ultimately, the flood of soy coming out of South America seemed to undercut bean and meal prices, while soyoil sustained modest gains on spillover palm oil strength. May soybean futures slid 4.0 cents to $9.61/bushel around midsession Thursday, while May soyoil rose 0.06 cents to 30.69 cents/pound, and May meal lost $1.9 to $318.9/ton.
Chinese news seems to be supporting the wheat markets. Financial market action apparently robbed wheat futures of upward momentum established Wednesday. Export Sales numbers were rather mediocre. However, bulls also found support from Chinese news. That country’s officials have reportedly bought 450,000 tonnes of high protein wheat in the past week, with 300,000 tonnes coming from Canada. That essentially tightens the whole North American market. May CBOT wheat slipped 0.5 cent to $5.1025/bushel late Thursday morning, while May KC wheat rose 2.0 cents to $5.55/bushel, and May MWE wheat added 4.25 to $5.8225.
Cattle futures traded mixed to higher Thursday morning. Nearby cattle futures opened strongly in the wake of Wednesday’s limit-up move, but have subsequently struggled. The market seems in danger of suffering a technical failure, which has probably attracted considerable selling. April cattle futures gained 0.40 cents to 156.97 cents/pound just before lunchtime Thursday, while August cattle edged 0.35 cents higher to 146.75 cents/pound. Meanwhile, April feeder cattle futures moved up 0.65 cents to 214.95 cents/pound and August feeders surged 0.82 to 215.20.
Nearby hog futures fell to fresh lows. Pessimism about the supply/demand outlook apparently weighed heavily upon CME hogs again this morning. Bearish technical traders are apparently anticipating a significant follow-through to the downside as well, despite current cash premiums. April hog futures plunged 2.30 cents to 58.40 cents/pound late Thursday morning, while June hogs sank 1.00 to 74.12.