Talk of large production is depressing corn futures. Corn futures proved unable to sustain their early-week follow-through to last week’s late rally and turned downward yesterday. Preliminary results of an ongoing crop tour seem to be weighing on the corn and bean markets. September corn stalled at $3.6075/bushel late Monday morning, while December sagged 0.75 to $3.7075.
Huge harvest expectations are also weighing on the soy complex. Talk of demand strength and cash firmness are boosting nearby meal and limiting losses in September beans. However, soy futures turned generally lower in response to improved crop rating posted Monday afternoon. New crop prices are also suffering from outstanding early-results on a private crop tour. September soybean futures slid 4.5 cents to $11.11/bushel as lunchtime loomed Tuesday, while November futures dropped 11.25 cents to $10.4625. September soyoil fell 0.41 cents to 32.55 cents/pound, but September soymeal climbed $4.6 to $396.7/ton.
Reports of reduced Ukraine production may have sparked wheat buying. The wheat markets also declined Monday night, but have posted rather impressive gains this morning. The rebound seemingly reflects news that Ukrainian officials have cut their wheat production forecast by 15%, with much of the drop reflecting the loss of the Crimea. Funds may also be cutting short holdings. September CBOT wheat advanced 11.25 cents to $5.5375/bushel around midsession Tuesday, while September KC wheat jumped 13.75 cents to $6.315/bushel, and September MWE wheat surged 12.75 to $6.21.
Fresh demand concerns seem to depressing cattle futures. There is little news concerning the cattle/beef complex at this point. Traders seemed to expect continued short-term strength last night, but the seeming potential for late-August weakness apparently spurred profit-taking in the wake of the early-August rally. October live cattle futures dove 1.20 cents to 147.35 cents/pound late Tuesday morning, while December futures tumbled 1.30 to 150.35 cents/pound. Meanwhile, September feeder futures dropped 1.12 cents to 214.95 cents/pound and November futures plunged 1.20 cent to 213.50.
Hog futures are fluctuating significantly today. Recent cash and wholesale losses resumed Monday, but traders became more optimistic about a short-term bounce later in the day and again last night. The rally seemed to fail in early trading, but bulls proved able to push prices into positive territory in late morning activity. October hogs edged down 0.02 cents to 95.07 cents/pound just before lunchtime Tuesday, while December moved 0.15 cents lower to 88.72.