Crop markets rose again early Tuesday morning

(AgProfessional) – Weather forecasts for persistently wet, cold conditions for parts of  the Midwest sent corn futures soaring Monday, with the expiring May  future reaching its daily limit.  Prices rose farther overnight in the  wake of the afternoon crop condition report, since it indicated that  planting of the 2013 U.S. crop is just 5% complete, whereas a result  around 9% was expected.  This reading is drastically below historical  averages for late April.  May corn rose 5.75 cents to $6.8975/bushel  early Tuesday morning, while December climbed 5.25 cent to $5.6475.

The ongoing slowdown in corn plantings is not necessarily supportive of  the soybean price outlook, since acreage that does not get planted to  corn will probably go into beans.  However, spillover strength from the  corn pit apparently boosted soybean futures Monday, as did persistently  tight old crop supplies here in the U.S.  Talk of strong Chinese demand  for old-crop American beans also supported futures Monday night.  May  soybeans jumped 13.25 cents to $14.85/bushel in pre-dawn Tuesday  trading, while May soyoil bounced 0.09 cents to 49.55 cents/pound and  May soybean meal added $5.0 to $436.4/ton.

Bullish spillover from the corn market as well as talk of frost damage  to the winter wheat crop and badly delayed spring wheat plantings  boosted the wheat markets substantially Monday.  Futures could see more  of the same today, especially if the ongoing Wheat Quality Council tour  confirms recent frost damage.  However, news that the Indian government  may be willing to lower its asking price in order to push 5.0 million  tonnes of its huge domestic stockpile onto the global market seemed to  stifle rally attempts in early Tuesday trading.  May CBOT wheat futures  were unchanged at $7.0975/bushel in the early hours of Tuesday morning,  while May KCBT wheat climbed 3.75 cents to $7.845, whereas May MGE  futures were also unchanged at $8.3175.

Cattle futures ended Monday narrowly mixed, then did little better  overnight.  The lack of concerted gains has to be disappointing bulls,  since they continue anticipating a sizeable early-May surge in cash  cattle and wholesale beef prices.  Beef cutout values did jump Monday,  so the lack of bullish follow-through at the CME is rather worrying.   June cattle edged just 0.10 cents higher to 122.65 cents/pound early  Tuesday morning, while December declined 0.05 cents to 128.02.  Feeder  cattle futures continued their grain-driven decline, with the May  contract falling 0.42 cents to 140.00 cents/pound overnight and August  tumbling 0.52 cents to 149.35.

Hog traders also had to be disappointed by the Monday CME performance,  when swine futures dipped despite supportive cash and wholesale  developments.  Chicago prices were mixed to higher Monday night.  The  fact that the spring and summer contracts are already trading at  substantial premiums over cash values probably explains bullish  struggles to push them even higher.  May hog futures gained 0.20 cents  to 89.50 cents/pound in early Tuesday morning action, while the June  contract inched up 0.15 cents to 92.30.