The soy complex traded unanimously lower. News of a big U.S. soybean sale for 2015/16 delivery and a fire-related blockage at Brazil’s port of Santos seemed supportive of the soybean and product markets this morning. But those apparently did not offset the bearish impact of today’s sizeable U.S. dollar advance. Palm oil weakness apparently weighed on soyoil quotes as well. May soybean futures sank 7.5 cents to $9.71/bushel in late Tuesday trading, while May soyoil sagged 0.23 cents to 31.03 cents/pound, and May meal dropped $3.3 to $319.7/ton.
Talk of coming rainfall seemed to sink the wheat markets Tuesday. Forecasts for the improved precipitation over the central U.S. and in the Black Sea region undercut wheat futures Monday night. Monday’s apparent failure at chart resistance and today’s U.S. dollar strength also encouraged bears. The futures markets bounced around midsession, which seemed to mark a speculative reaction to a morning statement confirming Russia’s commitment to its wheat export tariff, but bulls couldn’t sustain the bounce. May CBOT wheat settled 1.75 cents lower at $5.26/bushel Tuesday afternoon, while May KC wheat fell 6.75 cents to $5.6525/bushel, and May MWE wheat lost 6.25 to $5.835.
Spot market strength again supported cattle futures. Industry expectations for a big late spring-early summer breakdown in cattle and beef prices weighed rather heavily upon the CME markets today. However, midsession beef quotes built upon Monday’s rise, as well as last Friday’s big cash advance, thereby seeming to pull cattle futures higher at the close. Feeders lagged badly. June cattle futures ended Tuesday having bounced 0.57 cents to 152.32 cents/pound, while August cattle rallied 0.60 to 148.90 cents/pound. Meanwhile, May feeder cattle futures plunged 1.92 cents to 214.95 cents/pound, and August feeders tumbled 1.45 to 216.30.
Futures premiums seemingly rendered CME hogs vulnerable. As expected, Monday afternoon reports of cash strength boosted hog futures on the today’s opening, but bulls couldn’t sustain the upward momentum. That probably reflected talk of flat country prices this morning, as well as the premiums already built into Chicago prices. June hog futures slipped 0.25 cents to 76.35 cents/pound as Tuesday’s CME session ended, while December skidded 0.20 to 67.27.
Cotton is extended Monday’s big rally. A combination of supportive production news out of India, spillover equity market strength and a bullish analyst report powered sizeable cotton gains Monday. The first USDA crop condition report indicated laggardly cotton plantings and may have spurred additional buying. Technical resistance and U.S. dollar strength apparently limited early gains, but an attaché report pointing to diminished Brazilian production probably helped the fiber market reach fresh 2015 highs. May cotton surged 1.08 cents to 66.42 cents/pound at Tuesday’s ICE settlement, while December futures ran 0.72 to 65.64.