Traders seemingly think Wednesday’s grain losses were overdone. Corn and wheat futures tumbled yesterday in apparent response to forecasts for drier weather next week, with the yellow grain drop putting the market at its lowest levels since last October. Talk of firm spot quotes as farmers work fields and ignore old crop sales seemed to spark renewed bullishness. July corn futures rose 3.0 cents to $3.525/bushel late Thursday morning, while December added 2.25 to $3.69.
The soy complex proved mixed late Thursday morning. Persistent concern about the Argentine labor situation and that country’s ability to ship product is probably supporting soy prices to some extent. Asian palm oil boosted boost soyoil quotes and beans overnight, but subsequent setbacks left beans and meal underwater by late morning. One has to suspect good planting and growing conditions and the prospect of a huge fall crop are weighing on prices. July soybean futures sagged 3.25 cent to $9.2375/bushel around midsession Thursday, while July soyoil climbed 0.23 cents to 31.96 cents/pound, and July meal slid $4.5 to $303.6/ton.
Wheat markets have apparently stabilized Thursday morning. After tumbling yesterday, wheat futures are trading mixed to higher today. Contrary out of Russia after Wednesday’s forecasts probably encouraged bulls, with the weather forecasts seeming to take a back seat. One suspects traders the latest prediction for the northern Plains as less favorable, since the Minneapolis market was leading prices higher. July CBOT wheat futures bounced 1.5 cents to $4.895/bushel shortly before lunchtime Thursday, while July KC wheat slipped 0.75 cent to $5.1125/bushel, and July MWE wheat gained 0.75 to $5.45.
Cattle futures posted impressive Thursday morning gains. Although wholesale beef prices proved weak this morning, cattle futures seemed to ignore that bearish influence and surged rather dramatically. The market give the strong impression that cash cattle prices are holding up much better than previously thought, thereby forcing deeply discounted futures upward. June live cattle futures jumped 1.42 to 153.90 cents/pound in late Thursday morning trading, while August cattle leapt 1.85 to 153.27. Meanwhile, August feeder cattle futures soared 3.32 cents to 224.75 cents/pound, and November feeders vaulted 2.45 to 220.37.
Growing cash market firmness boosted CME hogs. Hog and pork traders have been anticipating seasonal price weakness through early June, but this week’s cash market action is apparently proving much stronger than anticipated. Nearby futures also seem to be threatening a technical breakout to the upside. June hog futures surged 0.55 cents to 84.32 cents/pound as the lunch hour loomed Thursday, while December inched up 0.07 to 69.05.