Corn: Corn futures closed 3 to 4 cents lower, finishing at or near their lows of the day. Prices were under pressure through most the day, easing even lower in the late session. A slight boost in the U.S. dollar index added pressure. Traders ignored this morning’s positive weekly export sales report, which came in at the top end of expectations. Export commitments are running 49% ahead of year-ago, which is well ahead of the pace to meet USDA’s export forecast.
Soybeans: Soybean futures were choppy overnight, but the market softened at the start of the day session and futures settled low-range and down 2 1/2 to 3 1/2 cents. Futures continue to hover around last Friday’s low, with selling being tempered by recognition the U.S. has continued to ship quite a few beans later in the marketing year than anticipated, as Brazilian farmers remain slow sellers and wet weather has slowed Argentine harvest efforts. Today’s weekly export sales data reminded of this as sales of 482,000 MT for 2016-17 and 395,000 MT for 2017-18 pushed the overall tally near the top end of expectations.
Wheat: Winter wheat futures ended low-range with losses of 4 to 6 1/2 cents. Spring wheat futures ended midrange with losses of 2 3/4 to 3 cents. A firmer tone in the U.S. dollar index provided early pressure in the wheat market, with added pressure coming from improved weather. This morning’s National Drought Monitor reflected significant improvement in Kansas and the forecast remains “active.” The National Weather Service forecast for April 12-16 calls for above-normal precip to continue across the Central and Southern Plains, along with above-normal temps. This combination will accelerate crop growth.
Cotton: Cotton futures ended the day 9 to 36 points weaker, with nearbys marginally leading losses. A firmer tone in the U.S. dollar index and a disappointing weekly export sales tally weighed on nearby futures. But pressure was limited as futures are hovering just above oversold territory, according to the nine-day Relative Strength Index. Weekly cotton export sales of 270,000 bales for 2016-17 were down 31% from the previous week, which disappointed market bulls. Meanwhile, exports were up 14% from the previous week.
Cattle: Live cattle futures closed 52 1/2 to 77 1/2 cents higher, with the August contract leading gains. Prices closed near their highs of the day. Prices edged higher today on followthrough buying after yesterday’s late rebound. However, uncertainty over this week’s cash trade limited buying interest. What trade that has occurred this week, while light, has been at lower levels versus last week. Additional selling pressure came from this morning’s lower wholesale trade. USDA indicates Choice beef fell $1.06 but Select firmed 60 cents this morning on light movement of 67 loads.
Hogs: Lean hog futures got off to a choppy start but the market strengthened as the day progressed, ultimately settling $1.12 1/2 to $1.67 1/2 higher, with the exception of the front-month that ended “just” 30 cents higher. Lean hog futures were initially pressured by ongoing weakness in the cash hog market, but this eventually gave way to some corrective short-covering and bargain buying. Traders are optimistic spring grilling demand will boost the product market, helping demand to better keep pace with rising supplies.
