Corn prices rebounded this afternoon, and closed higher, driven largely by today’s wheat rally, according to Reuters. Counteracting that support, however, corn prices still seem to be reacting to favorable weather forecasts pointing toward another record production year. Despite weather a little bit cooler than normal, recent rainfall, as well as anticipated warmer temperatures, bode well for this year's crop. July corn closed up .75 cents to $3.5275/bushel and December edged 1.0 higher to $3.69. The dollar Index has also risen 0.56 percent to 87.77.
A weak export report and better than expected planting pace weighed on the soy complex today, with the exception of soyoil. Adding to the downward trend was news that the three-week strike by Argentine crush workers will reportedly end since it appears they've agreed to a pay hike. This eases concerns about export logistics and reduced South American shipments, thereby depressing beans and meal overnight. However, soyoil continued rallying, reaching a seven-month high, presumably in response to last Friday's bullish RFS proposal by the EPA. July soybean futures lowered 8.0 cents to $9.26/bushel in the closing session, while July soyoil climbed 1.18 cents to 34.51 cents/pound, and July meal plummeted $9.10 to $296.6/ton.
Wheat prices surged to the upside today on a round of short covering, according to traders, bouncing from three-week lows. Support presumably also came from the release of the USDA weekly grain inspection report. The newly revised figures suggest unexpectedly strong demand. Wheat exports for the week ended 5/29/2014 were 532,901 tonnes, compared to a top forecast at 400,000 tonnes. July CBOT wheat futures surged 16.75 cents to $4.9375/bushel at the close Monday, and July KC wheat moved up 14.75 cents to $5.1425/bushel, and July MWE wheat vaulted 17.25 cents to $5.48.
Cash cattle trading last Friday supported prices Monday morning. Last Friday’s huge wholesale losses undercut cattle futures and seemingly boded ill for week-ending cash market action. However, country prices actually proved rather mixed, with steady-firm action in the southern Plains and steady-weak action in Nebraska. That news very likely powered today’s gains. August live cattle futures advanced 0.975 cents to 152.15 cents/pound at the close, while December cattle rose 0.575 to 155.05. Meanwhile, August feeder cattle futures rallied 0.65 cents to 223.55 cents/pound, and November feeders ran up 0.575 to 219.75.
Friday’s pork bounce seemed to spur hog gains. Hog futures followed cattle lower last Friday, with the CME losses likely being exaggerated by Thursday’s huge pork drop. However, pork values reclaimed most of those losses Friday afternoon, which seemingly encouraged bulls to push hogs higher in concert with cattle in early Monday action. August hog futures surged 0.80 cents to 83.375 cents/pound at the closing session Monday, while December moved up 0.35 to 69.775.
Cotton’s morning rally lost steam today and closed to the downside. The recent upward price trend was likely related to the unexpectedly strong export sales numbers from Friday. Adding to the bullish run-up over the last few days could have been slow cotton sowing in Texas, the top producing state, and, possibly, the heat wave in India, the largest cotton producing country, which has killed nearly 2,200 people and threatens the crop. However, profit-taking and consolidation might explain the pullback during today’s late session. July cotton slipped 0.60 cents to 63.75 cents/pound at the close, and December futures declined 0.54 to 64.10.