Corn futures followed wheat lower Monday. News of good rainfall over the southern Plains sank the wheat markets Sunday night, with losses growing this morning. Corn couldn’t escape the undertow, particularly with
traders also viewing the rain as negative for yellow grain prices. The U.S. dollar set back from its early highs, but certainly didn’t help the bullish cause. The Export Inspections result had little impact. May corn futures slumped 6.5 cents to 3.705/bushel in late Monday trading, while December lost 6.5 to $3.96.
The soy complex ended Monday generally lower. Talk of growing South American supplies is exerting persistent pressure upon the soybean and meal markets. Having the U.S. dollar threatening to challenge its March
highs discouraged bulls as well, especially with record South American production weighing on global soy values. The Export Inspections figure was no surprise. Firm crude and palm oil prices supported soyoil futures,
but didn’t prevent a late slide. May soybean futures ended Monday having sagged 2.75 cents to $9.4875/bushel, while May soyoil inched 0.05 cents lower to 31.04 cents/pound, and May meal skidded $0.4 to $308.8/ton.
Weekend rains sent wheat markets sharply lower. Concerns about persistent southern Plains dryness had recently supported wheat futures, but good rains fell on the U.S. southern Plains over the weekend. That news, along with U.S. dollar strength and technical resistance, apparently triggered the losses experienced Sunday night and again today. Support at the nearby contracts’ 40-day moving average also failed, thereby exaggerating the drop. May CBOT wheat dove 24.25 cents to $5.0225/bushel at Monday’s close, while May KC wheat plunged 29.75 cents to $5.29/bushel, and May MWE wheat dropped 21.00 to $5.60.
Cattle futures had apparently anticipated Friday’s cash drop. Bearish cash expectations sent cattle futures tumbling Friday, with late-day trading, in which Nebraska quotes dove $5.00/cwt, seeming quite extreme. However, CME futures rebounded from post-opening lows, with most contracts actually moving into positive territory through the close. That suggests the market had fully anticipated the cash breakdown. June cattle futures edged up 0.15 cents to 148.95 cents/pound as CME trading ended Monday, while August cattle climbed 0.27 to 146.82 cents/pound. Meanwhile, May feeder cattle futures gained 0.32 cents to 210.05 cents/pound, and August feeders moved up 0.35 to 211.80.
Hog futures may be breaking out to the upside. Although pork quotes ended last week poorly, cash hog prices seemed to turn sharply higher last Friday. That boosted the expiring April contract despite its premium over
spot values and pushed the most-active June future above major chart resistance. That may indicate the long-standing downtrend has run its course. June hog futures rallied 1.32 cents to 79.47 cents/pound in late
Monday morning action, while December advanced 0.25 to 68.50.
Cotton firmed above technical support. After previously rallying strongly, cotton futures turned downward in the wake of last Thursday’s USDA reports. They continued Friday’s big slide Sunday night, but prices rebounded substantially from the early lows. But bulls couldn’t sustain the upward momentum and futures ended the day only slightly higher. Continued U.S. dollar firmness may have stifled the rally attempt. May
cotton rose 0.07 cents to 65.13 cents/pound at Monday’s ICE settlement, while December futures added 0.16 to 65.77.