Planting talk seems to be undercutting corn futures. Surging equity markets, news of Chinese economic stimulus and the USDA Export Inspections result all might be construed as supportive of corn futures. However, prices declined rather significantly this morning, which seemingly reflects a reaction to ideas that plantings surged in the southern Corn Belt last week. May corn futures sank 2.0 cents to $3.7775/bushel late Monday morning, while December sagged 2.25 to $4.01.
Export hopes are boosted the soy complex Monday morning. China’s central bank lowered the reserve requirements for domestic banks over the weekend in hopes of stimulating their economy. If successful, that might boost the country’s already huge demand for soybeans and products. Also, reports of excessive Argentine rainfall and a potential resumption of first-quarter Brazilian trucker strikes sparked bullish soy interest. May soybean futures surged 9.25 cents to $9.78/bushel around midsession Monday, while May soyoil ran up 0.24 cents to 31.75 cents/pound, and May meal climbed $3.8 to $318.8/ton.
The wheat markets are again trading in mixed fashion. Today’s concurrent stock and currency market gains may be offsetting in their influence over the wheat markets. Actually, the weekly Export Inspections report looked rather bullish, which may explain midmorning Chicago and Minneapolis gains. Conversely, weekend rainfall over the southern Plains seems to be weighing on the Kansas City market. May CBOT wheat advanced 2.25 cents to $4.9675/bushel shortly before lunchtime Monday, while May KC wheat edged up 1.5 cents to $5.1075/bushel, and May MWE wheat rallied 3.25 to $5.36.
Cash losses sparked another breakdown in cattle futures. Friday’s cattle events were quite similar to those seen one week prior, when talk of cash market losses sent Chicago prices tumbling. Weak midsession beef quotes seemed to trigger the CME drop, which then accelerated upon news of lower cash market declines. The dive implies follow-through losses upon today’s opening. June and August cattle futures plunged the 3.00-cent daily trading limit, ending Friday at 149.00 and 146.67 cents/pound, respectively. Meanwhile, May and August feeder cattle futures plummeted the expanded 4.50-cent feeder limit to respectively close at 208.52 and 210.20 cents/pound.
Wholesale strength limited CME hog losses. Bullish seasonal expectations are built into hog futures, so divergences from an upward cash trend, as seemed to be the case Friday morning, tend to weigh on Chicago prices. However, midsession news of modest pork gains apparently limited the decline, since that encourages packer demand for swine. Afternoon reports indicated a big wholesale surge, which seems likely to support hogs on their Monday opening. June hog futures slipped settled just 0.10 cents lower at 76.27 cents/pound Friday, while December sank 0.52 to 67.87.