US Agriculture after the Closing Bell Futures Report
Wheat futures softened into the close to finish narrowly mixed in Chicago; around 0.01 higher in Kansas City and weaker in Minneapolis on Tuesday. After enjoying slight to moderate gains most of the trading session, Wheat futures saw pressure into the close as traders lightened their long holdings and booked profits on the day.
Corn futures closed mixed on Bull spread unwinding. Old-crop futures finished 0.06 to 0.065 lower, with Sept + 0.0075. New-crop corn ended 0.035 to 0.0425 higher. Early buying in old-crop Corn gave way to Bull spread unwinding despite rumors China was shopping for US Corn. Long Soybean/short Corn spreading was also a featured action.
Soybean futures closed 0.055 to 0.0750 higher, which was near the middle of Tuesday's range. Meal futures were mostly 2.40 to 3.40 higher, Soyoil posted gains of 9 to 12 pts. Buyers returned to the Soybean market Tuesday after consecutive days of corrective price declines. Fundamental support came from fresh demand news as USDA announced daily sales of 225,000 metric tons (MT) of Soybean to unknown destinations, split between this and the upcoming marketing year.
May and Jul Cotton futures settled high-range with gains of 173 and 121 pts, respectively. Deferred contracts finished at or near their daily lows with gains of 4 to 31 pts. Cotton futures benefited from corrective Short-covering after sharp to limit-lower losses Monday on widespread risk aversion and beneficial rains in the South over the weekend.
Live Agricultural Markets
Live Cattle futures enjoyed light short-covering support to finish 0.30 to 0.875 higher. Feeder Cattle futures closed 1 to 1.525 higher, supported in part by weakness on old-crop Corn futures. Traders in the Cattle pit are growing more optimistic of a near-term low being in place in the product market.
Lean Hog futures closed 0.575 to 1.25 higher in the May through Aug contracts to recoup a good portion of yesterday's losses. Far-deferred futures closed mixed with an upside bias. Lean Hog futures benefited from thoughts that the downside was overdone. Price-supportive outside markets, led by strong gains in the stock market and general strength in commodities, encouraged traders to cover Short positions.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.