Cotton and hog futures rallied early Tuesday morning

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Nearby corn futures rose Monday on ideas that the quarterly Grain Stocks report set for release Thursday will state current holdings at their lowest in 15 years, whereas the deferred contracts seemingly rallied in response to potential planting delays stemming from the weekend Midwest snow storm. They gave back a portion of those gains overnight as traders apparently moved to balance positions ahead of the Prospective Plantings and stocks reports. May corn slipped 1.25 cent to $7.32/bushel early Tuesday morning, while December edged 0.50 cent lower to $5.715.

Nearby soybeans futures rebounded moderately from Monday slippage in early Tuesday morning action. The nearby contract gains probably reflect bullish expectations concerning the results of the quarterly USDA stocks report. Conversely, the deferred contracts dipped overnight, which probably points to talk of shifting plantings from corn to beans if spring weather delays prove substantial. Soybean oil was apparently depressed overnight by losses in the Asian palm oil markets. May soybeans gained 0.25 cent to $14.375/bushel in overnight action, while May soyoil slid 0.08 cents to 50.36 cents/pound, and May meal added $0.8 to $418.6/ton.

Wheat futures bounced back from their modest Monday losses Tuesday morning. Wire service reports cited robust export demand for the rise, but the rise may also reflect Monday afternoon talk of frost damage done to fields in west Texas over the weekend. Wheat traders are also likely to be adjusting their positions ahead of the USDA reports due Thursday morning. May CBOT wheat futures gained 0.25 cent to $7.275/bushel in early Tuesday morning trading, while May KCBT wheat climbed 0.25 cents to $7.5925, and May MGE futures rose 2.75 cents to $8.08.

Cattle futures closed firmly Monday in apparent response to the Friday, March 22 USDA Cattle on Feed report, but wire service sources apparently pointed to industry hopes for improved spring beef demand after Easter. That may also explain the modest gains posted overnight despite sizeable losses on the Monday afternoon wholesale beef report. April cattle inched upward 0.10 cents at 126.55 cents/pound in pre-dawn Tuesday trading, while August skidded 0.10 cents to 123.05. Meanwhile, April feeder cattle futures lost 0.20 cents to 138.20 cents/pound, and August declined 0.32 cents to 147.85.

After dipping Monday morning, CME lean hog futures turned decidedly to the upside later in the day. They continued the surge in overnight trading. The rally seems to anticipate a seasonal resurgence in cash and wholesale values. Improving spring demand and dwindling hog and pork supplies traditionally send hog prices sharply higher before Independence Day. Whether that will occur very quickly is open to question. April hogs surged 1.02 cents to 79.45 cents/pound overnight while June climbed 0.62 cents to 91.40.

Cotton futures continued their late decline Monday, then vaulted upward early Tuesday morning. The market almost surely declined Monday in response to the late rise in acreage forecasts for the Thursday morning Prospective Plantings report. However, officials from the Chinese National Development and Reform Commission (NDRC) stated overnight that while they will release some 2012 cotton from reserves, they will also stockpile 2013 cotton. That almost surely powered the big surge posted overnight. May cotton jumped 1.71 cents to 88.30 cents/pound early Tuesday morning, while December leapt 1.37 cents to 87.62.



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