Corn: Corn futures finished mid- to low-range, with losses of 1 to 1 1/2 cents through the December contract. Corn futures were unable to find sustained followthrough buying after yesterday’s high-range close. The corn market continues to spin its wheels amid a lack of highly supportive news. Without a bullish catalyst, the upside remains limited to corrective buying, which makes it difficult to find sustained buying.
Soybeans: Soybean futures spent the bulk of the day in positive territory and the market ended high-range and up 4 1/4 to 5 1/2 cents. Soyoil faced pressure once again, while soymeal futures posted solid gains. Yesterday’s move above the 20-day moving average and the high-range close gave way to followthrough buying today. The forecast for Argentina is also lending the market some support, as warm to hot conditions are expected over the next 10 days, with limited rainfall.
Wheat: Winter wheat futures ended the day around 2 to 4 cents higher, with spring wheat futures ending mixed. Winter wheat futures benefited from followthrough from yesterday’s gains as traders continue to cover newly established short positions that came in reaction to USDA’s higher-than-expected winter wheat acreage figure last week. The overall weakness of the U.S. dollar index added to short-covering incentive, but traders will have to wait until tomorrow morning to see if export demand has improved (the weekly sales report has been delayed due to Monday’s holiday).
Cotton: Cotton futures ended the day midrange with gains of 33 to 76 points through the October contract. Far-deferred futures posted much lighter gains. March and May futures challenged contract-high resistance before turning back, while July and December futures posted a round of contract highs before setting back. Futures continue to be supported by news that mills are short-bought and are being forced to chase the market higher. Ongoing weakness in the U.S. dollar index is also supportive, but traders will have to wait until tomorrow morning for a read on export sales.
Cattle: Live cattle futures posted gains of 70 cents to $1.075 through the August contract. Feeder cattle ended $1.10 to $1.30 higher through the May contract. Live cattle and feeder cattle ended high-range for the day. Futures were supported by followthrough buying today. Fundamental support came from hopes for firmer cash cattle prices. Yesterday’s Fed Cattle Exchange online auction showed prices around $1 higher than last week, which has traders expecting similar price gains in the conventional cash market in the Plains.
Hogs: Lean hog futures saw a choppy day of trade, but most contracts ended high-range and 2 1/2 to 37 1/2 cents higher for the day. The exception was the May contract that settled low-range and down 42 1/2 cents. This week’s kill is lagging recent strong tallies as an explosion at an Oklahoma packing plant disrupted operations this week and slick roads and snowfall in the southeast slowed marketings. This has spurred some talk about marketings backing up on farms and caused cash hog bids to slip at reporting locations again this morning.