After the Bell: Weather Concerns Lift Markets to Start the Week
Corn: Corn futures favored the upside throughout the day, but the market did pare gains at the close to settle 2 1/2 to 2 3/4 cents higher in most contracts. Wet, cool weather is expected to continue this week, raising concerns about getting the remainder of the corn crop planted and the likelihood some acres will shift to soybeans. Traders expect USDA to report around 85% of the crop was planted as of Sunday, which based on March intentions would imply that nearly 13.5 million acres have yet to be planted.
Soybeans: Soybean futures settled 3 1/4 to 4 1/2 cents higher through the March contract. That was in the middle to upper end of today's range. Soybean futures were supported by weather concerns today, as cold, wet conditions were seen across the Corn Belt over the weekend and the active weather pattern is expected to continue into at least early June.
Wheat: SRW wheat futures closed narrowly mixed, HRW contracts finished roughly 1 to 2 cents lower and spring wheat futures ended around 2 to 3 cents higher. Bulls have to be generally disappointed with the close in wheat today after winter wheat futures failed to hold onto earlier gains. Weather concerns amid late-season rains on the winter wheat crop, along with spillover from corn and soybeans, supported the market for much of the day, but buyer interest faded into the close.
Cotton: Cotton futures strengthened in early trade, but that quickly gave way to profit-taking that kept the market under pressure into the close. July and October futures settled 106 points and 116 points lower, respectively, while deferred contracts ended between 23 and 44 points lower. Cotton futures initially bounced on concerns about heavy rains and some flooding in key production regions over the weekend. But that was short-lived. Talk that India and China have canceled some export business gave traders reason to book profits, extending the market's downtrend.
Cattle: Live cattle futures enjoyed gains to start the week and futures ended 47 1/2 cents higher in the June contract to $1.72 1/2 higher in the October contract. Cattle futures enjoyed strong followthrough buying to start the week, with traders taking note of nearby contract's wide discount to last week's cash trade that took place at an average price near $134. Adding to the positive tone, Choice and Select boxed beef prices firmed this morning amid decent movement.
Hogs: June and July lean hog futures closed 15 and 12 1/2 cents lower, respectively. The August through December contracts ended slightly higher. Spillover from the cattle market supported lean hog futures for much of the day. However, weakness in the cash hog market mildly weighed on nearby hog futures into the close. Cash hog bids were around $1 lower across the Midwest this morning on limited packer demand amid plentiful market-ready supplies.
