Markets Now Closes - 5/5 Corn, Soybeans See Profit Taking, Farmer Selling: Cattle Recover Tuesday

Why It Matters

The mix of technical selling, fast planting progress and energy-market weakness could cap near-term upside for grains unless weather or a China procurement surprise alters fundamentals; wheat’s drought risk and long fund positioning pose upside price risk, and cattle’s recovery underscores firmer cash-market dynamics.

Summary

Corn and soybean futures pulled back Tuesday as profit-taking and farmer selling hit front-month contracts after recent contract highs, with July corn meeting March resistance. Rapid planting — soybeans about 10% and corn roughly 38% ahead of five-year averages — and a softer crude oil complex also cooled bullish momentum. Soybeans remain sensitive to an upcoming mid-May China meeting that could boost demand, while wheat is trading on a mix of drought-driven supply concerns and crude-linked flows, with managed-money positions at multi-year longs. Livestock futures saw gains, with cattle rebounding after last week’s strong cash trade and technical support holding.

Original Description

Greg McBride from Allendale, Inc.