After the Bell: Grain Markets Rally Ahead of Holiday
Corn: Corn futures posted gains of 6 1/2 to 7 1/2 cents through the May contract today, but that was midrange. Corn futures followed the soybean and wheat markets higher, but futures backed well off session highs as midday weather models signaled temps won't be as hot as previously thought across the Corn Belt.
Soybeans: Soybean futures gapped higher overnight and sharply extended to the upside, but gains were pared late as the U.S. midday weather model signaled temps won't be as hot as previously expected across the Corn Belt. Futures still ended 20 1/4 to 26 cents higher through the March contract.
Wheat: Spring wheat futures settled 33 1/4 to 44 1/4 cents higher, while winter wheat ended mostly 28 to 30 cents higher. While that was off session highs, it was still a high-range close. Weather was and will likely remain the story in the wheat market. Spring wheat condition ratings have plummeted amid hot, dry weather and the forecast calls for more of the same through mid-July.
Cotton: Cotton futures finished modestly lower Monday amid a sharp rally in the U.S. dollar. Cotton futures ignored strong gains in the grain and soy markets. A drop in crop condition ratings last week, still-strong export demand and USDA's lower-than-expected cotton plantings estimate helped the market rally last Friday.
Cattle: Live cattle futures ended 32 1/2 to 55 cents lower through the December contract. Feeder cattle finished $1.25 to $1.82 1/2 lower through the January contract. Cattle futures firmed on modest corrective buying last week, but the upside is likely to remain limited this week.
Hogs: July lean hog futures finished 7 1/2 cents higher today. The August through December contracts posted gains of 65 cents to $1.10. Traders quickly digested the Hogs & Pigs (H&P) Report and continued to narrow the discount summer-month contracts hold to the cash index. Traders will keep a close eye on the pork market for signs of post-holiday features