Corn still seems to be tracking wheat. Corn futures followed wheat higher last week and again Sunday night, then turned lower in concert with this morning’s wheat reversal. The drop was rather surprising, especially in light of a strong result on the weekly USDA Export Inspections report. Technical resistance may have played a significant role in the yellow grain decline as well. May corn futures slipped 2.5 cents to $3.8425/bushel late Monday morning, while December lost 1.75 to $4.0875.
The soy markets traded mixed again Monday morning. Talk of large South American supplies, particularly with incipient Argentine production set to boost Brazilian totals appears to be depressing soybean and meal prices. Meanwhile, resurgent crude oil prices are boosting soyoil quotes once again. Meal may also be suffering from the unwinding of long meal/short oil crush spreads. May soybean futures slid 4.5 cents to $9.825/bushel as the lunch hour loomed Monday, while May soyoil surged 0.56 cents 31.60 cents/pound, and May meal dipped $4.9 to $322.4/ton.
The wheat markets couldn’t sustain Sunday night gains. Talk of persistent southern Plains dryness reportedly powered wheat gains late last week and again last night. However, bulls couldn’t sustain the upward momentum this morning, with the nearby Chicago contract seeming to fail at major chart resistance around the $5.40 level. Wire service reports cited poor export demand for the reversal. May CBOT wheat fell 10.75 cents to $5.255/bushel around midsession Monday, while May KC wheat dropped 11.75 cents to $5.71/bushel, and May MWE wheat sank 5.75 to $5.8975.
Cash news spurred early cattle strength. Fed cattle reportedly traded actively at $168/cwt (cents/pound) in Nebraska last Friday. That $3 weekly rise almost surely triggered today’s strong CME opening. Futures have actually set back from their early highs, thereby reflecting industry expectations for a big seasonal setback during late spring and early summer. June cattle futures climbed 0.37 cents to 153.75 cents/pound in late Monday morning trading, while August cattle lifted 0.22 to 150.05 cents/pound. Meanwhile, May feeder cattle futures soared 1.85 cents to 219.30 cents/pound, and August feeders leapt 1.60 to 220.15.
Wholesale strength is apparently supporting CME hogs. Pork demand seems depressed at this point, which made Friday afternoon news of sizeable pork price gains rather impressive. That rise apparently more than offset concurrent reports of cash market slippage. The sustained nature of the early CME strength suggests optimism about this week’s outlook as well. June hog futures surged 1.00 cent to 76.70 cents/pound just before lunchtime Monday, while December climbed 0.60 to 67.30.