Cotton was the bullish exception to mixed Tuesday night trading

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Bears regained the upper hand in the corn market Tuesday night. Yesterday’s surprising corn bounce was seemingly sparked by technical and pragmatic factors. However, traders still seem to regard the trend as bearish, with CBOT prices seeming unlikely to sustain a rebound in the near future. December corn futures dipped 2.0 cents to $4.1575/bushel early Wednesday morning, while May slid 2.25 to $4.325.

Resurgent oil prices are seemingly supporting beans this morning. Talk of bargain hunting and renewed optimism about global demand for Asian palm oil boosted that market Tuesday night. That strength spilled over into soybean oil prices as well, which in turn appeared to support soybean futures. And while the meal situation seemingly remains quite tight, that product was on the wrong side of crush spread overnight. January soybean futures edged up 2.75 cents to $12.79/bushel around dawn Wednesday, while December soyoil rallied 0.29 cents to 40.28 cents/pound, and December soymeal skidded $0.6 to $408.3/ton.

The wheat markets were mixed in overnight action. After rallying in apparent response to the latest Crop Progress report, wheat futures turned mixed Tuesday night. The winter wheat contracts continued outperforming their spring wheat counterparts from Minneapolis, thereby seeming to reflect the diminished expectations for next summer’s harvest. crop. December CBOT wheat futures were steady at $6.5025/bushel in early Wednesday trading, while December KCBT wheat futures climbed 0.5 to $6.99, but December MWE futures declined 0.75 to $6.97.

Cattle futures bounced modestly Tuesday night. Choice grade beef values continued their late slide Tuesday, which seemingly triggered a second straight dive in CME cattle futures. However, Chicago prices rebounded slightly in overnight action despite persistent wholesale weakness, thereby suggesting a firmer showing during the days just ahead. December cattle futures gained 0.10 cents to 131.05 around sunrise Wednesday, while April futures bounced 0.27 to 132.50. Meanwhile, January feeder cattle inched up 0.12 cents to 162.52 cents/pound, but March feeders sagged 0.05 cents to 162.60.

Contradictory cash and wholesale quotes are limiting hog moves. Cash hog prices rose and pork values fell Tuesday, thereby reversing moves posted the day before. These contradictory shifts rob the market of momentum and confuse traders, so it isn’t terribly surprising to see futures trading near unchanged levels this morning. December hog futures crept up 0.05 cents to 85.47 cents/pound in overnight trading, while April slumped 0.12 to 92.62.

Chinese news sparked a big cotton bounce in early Wednesday action. Traders have been expecting an announcement of sizeable cotton sales from China’s massive cotton stockpile, but no news was forthcoming. Bulls are hoping the lack of an announcement presages a sales delay, thereby implying potential short-term tightness. December cotton jumped 1.24 cents to 77.12 cents/pound just after sunrise Wednesday, while March cotton leapt 1.46 to 79.02.



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