|Hogs: Afternoon Comments (Tuesday, May 24, 2016 13:29:37)
Lean hog futures are called lower on followthrough selling. Futures are expected to see followthrough from yesterday's downside day of price action. Yesterday's Cold Storage Report showed pork stocks at the end of April at 635.424 million lbs., coming in slightly above expectations. The cash hog market is expected to be mostly steady today. Packers' margins have tightened, but they remain in the black. June lean hog futures are trading in line with the cash index that has risen daily since April 19.
|Soybeans: Afternoon Comments (Tuesday, May 24, 2016 13:27:27)
Soybean futures are called 10 to 15 cents lower on followthrough selling. There was no "turnaround Tuesday" for soybean futures in overnight trade, as futures saw sharp followthrough from yesterday's double-digit losses. Strength in the dollar index added to pressure overnight, as it raises concerns about the competitiveness of U.S. soybeans amid an active Brazilian shipping season. Key this morning is if traders view the weaker tone as a buying opportunity or if traders continue to take profits out of the market. Yesterday's progress data from USDA showed soybean planting at 56% complete as of Sunday, ahead of the five-year average of 52%. Rains in the extended outlook raise expectations some remaining corn acres will be switched to soybeans. This is encouraging long soybean/short corn spread unwinding. Also this morning, USDA announced an unknown buyer has purchased 140,000 MT of U.S. soybeans for 2016-17.
|Corn: Afternoon Comments (Tuesday, May 24, 2016 13:26:35)
Corn futures are called 1 to 2 cents lower on light profit-taking. Following yesterday's gains, corn futures saw light profit-taking, with additional pressure coming on spillover from sharp losses in soybean futures. Strength in the dollar index added to pressure. Key this morning is if traders view the weaker start as a buying opportunity as bulls still have the near-term technical advantage. Yesterday's USDA progress data showed corn planting as of Sunday at 86% complete, which is one percentage point ahead of average. But with rain in the forecast for the next 10 days, there is increased talk about 1 to 2 million acres shifting to soybeans.
|Wheat: Afternoon Comments (Tuesday, May 24, 2016 13:28:04)
Wheat is called 1 to 3 cents lower on spillover from corn and soybeans. Wheat futures ended the overnight session weaker on spillover from corn and soybeans and strength in the U.S. dollar index. Yesterday's USDA crop condition data was unchanged from week-ago, but our weighted Crop Condition Index (CCI) shows the HRW crop improved and the SRW crop declined. The first spring wheat condition ratings of the season came in stronger than expected. Our CCI shows the crop up 10.12 points from year-ago (on a 500-point scale).
|Cotton: Afternoon Comments (Tuesday, May 24, 2016 13:25:39)
The Monday afternoon release of the weekly USDA Crop Progress report seemed somewhat supportive of the cotton market, since planting progress slowed significantly. Indeed, Texas plantings rose just one percentage point from the week prior, suggesting farmers in the region are falling behind. However, the U.S. dollar continued rising overnight, thereby exerting fresh downward pressure upon the commodity markets, including cotton futures. July cotton slipped 0.10 cents to 61.35 cents/pound in early Tuesday trading, while the December contract dipped 0.19 to 61.15.