Optimism about Wednesday’s WASDE result seemed to boost corn futures this morning. Chinese officials announced Monday night that they had approved Brazilian corn for import. The implied increase in competition for U.S. corn apparently weighed on CBOT prices. However, prices rebounded in morning action, seemingly reflecting traders suspicions that the USDA WASDE report will indicate strong demand and tightening supplies. May corn bounced 5.5 cents to $5.0475/bushel late Tuesday morning, while December inched up 2.0 to $5.075.
WASDE expectations also seemed to spur soy buying. Although news that a South American beans have begun arriving at U.S. ports depressed soybean prices to start the week, but, as in the corn pit, soy values rebounded this morning. Again, wire service sources cited bullish ideas about the results of the forthcoming WASDE report for the surprising bounce posted this morning. May soybeans ran up 10.75 cents to $14.75/bushel around midsession Tuesday, while May soyoil advanced 0.18 cents to 41.61 cents/pound, and May soymeal surged $4.3 to $478.6/ton.
Weather forecasts may be weighing upon wheat futures. Monday’s weekly state reports on winter wheat conditions showed continued deterioration in the southern Plains, but the weak market reaction suggests traders expected crop conditions to be even worse. In addition, the latest weather forecasts suggest improve moisture potential for mid-April, which is probably depressing prices as well. May CBOT wheat futures fell 1.5 cents to $6.7475/bushel in late Tuesday morning action, while May KCBT wheat futures dropped 0.75 cent to $7.3875, and May MWE futures lost 2.5 cents to $7.1975.
Wholesale strength may be supporting cattle futures. CME cattle futures rose moderately this morning, which may have partially reflected the sizeable discount to cash values already built into the various contracts. In addition, grocers seemingly stepped up their buying for early-May beef features this morning, with the resulting wholesale price increase seemingly supporting CME prices. June cattle futures rallied 0.47 cents to 135.40 cents/pound just before lunchtime Tuesday, while December advanced 0.25 to 139.90. Meanwhile, May feeder cattle edged up 0.17 cents to 179.02 cents/pound, and August climbed 0.35 to 180.85.
Bearish expectations seemed to dominate the hog market Tuesday morning. Although wholesale quotes rose modestly this morning, CME hog traders were not encouraged. They apparently believe the February-March price spike reflected supply reductions unlikely to continue this summer. Moreover, the soaring prices could substantially reduce demand before grilling season even arrives. June hog futures plunged 2.80 cents to 117.95 cents/pound late Tuesday morning, while December dove 2.75 to 87.90.