Corn bounced from technical support Tuesday. Corn reacted rather poorly to Monday’s USDA report despite trader views that it was price supportive. Weakness spilling over from the soy market likely depressed corn as well. However, nearby futures stabilized at technical support this morning, then marched upward in concert with wheat futures as the day passed. Concerns about the Black Sea situation may have exaggerated the bounce. May corn settled 5.0 cents higher at $4.8325/bushel Tuesday afternoon, while December rose 3.25 to $4.8125.
The soy complex suffered an old crop/new crop split. Although current soybean fundamentals remain supportive, CBOT traders have apparently been disappointed by the latest developments. Nearby futures couldn’t sustain a bounce from Monday’s lows today. That weakness seemingly caused traders to doubt U.S. producers will plant beans very aggressively this spring, which sparked gains in new crop futures. May soybeans declined 5.75 cents to $14.13/bushel at Tuesday’s close, while May soyoil dipped 0.11 cents to 43.75 cents/pound, and May soymeal slumped $0.5 to $444.2/ton.
Bullish talk boosted the wheat markets. After declining along with the soy complex Monday, wheat futures staged an impressive rebound today. Fresh concern about the impact of dryness in winter wheat growing areas reportedly spurred buying, as did renewed worry about the Black Sea political situation. May CBOT wheat futures jumped 18.25 cents to $6.59/bushel in late Tuesday action, while May KCBT wheat futures leapt 17.25 cents to $7.285 and May MWE futures gained 14.25 to $7.07.
Cattle futures are still trading in mixed fashion. Continued wholesale strength and a sizeable discount to cash prices supported the nearby April cattle contract Tuesday. However, the deferred contracts ended the day weakly, possibly on worries about a negative consumer reaction to record cattle and beef prices. April cattle futures lifted 0.30 cents to 143.45 cents/pound late Tuesday afternoon, while August sagged 0.40 cents to 134.05. Meanwhile, April feeder cattle edged down 0.15 cents to 175.57 cents/pound, and August lost 0.20 to 177.80.
Hog futures posted a late Tuesday comeback. After soaring on cash and wholesale strength lately, hog futures had fallen back to mixed levels around midsession today. However, they resumed their advance late in the day in seemingly belated response to bullish midsession reports. April hogs settled 1.10 cents higher at 117.10 cents/pound Tuesday, while June jumped 1.45 to 124.95.