The corn market couldn’t keep up with soybeans Tuesday morning. Corn and soybean futures have obviously surged in response to deteriorating weather conditions lately. However, while it will almost surely be hurt by persistent droughty weather, the corn crop probably won’t suffer dramatically in these conditions. That’s probably why corn futures dipped while soybeans continue rising Tuesday morning. September corn fell 5.5 cents to $5.0325/bushel around midsession Tuesday, while December sank 3.5 cents to $4.97.
Soybeans resumed their advance in early Tuesday trading. After having stalled overnight, soybean futures turned higher again as the morning passed. This wasn’t terribly surprising, because extreme heat and dryness at this time could sharply curtail bean production later this year. September soybeans surged 6.75 cents to $14.345/bushel just before lunchtime Tuesday, while November beans added 2.5 to $13.92. September soyoil dipped 0.04 cents to 44.40 cents/pound, whereas September soymeal advanced $7.0 to $465.6/ton.
Wheat futures were mixed in Tuesday morning action. The winter wheat markets moved generally lower in response to the losses suffered by corn in early trading, but there were also signs of firmness. Gains in Minneapolis futures were pretty surprising, since heat and dryness at this time could facilitate the spring wheat harvest. September CBOT wheat rose 0.5 cent to $6.5525/bushel by late Tuesday trading, while September KCBT wheat edged 2.5 cents higher to $7.105, and September MGE futures added 2.25 cents to $7.315.
Cattle futures were hurt by equity losses Tuesday morning. The cattle market has performed well lately, but traders apparently expect slippage this week, since grocers have probably met their needs for Labor Day. Moreover, economic weakness implied by today’s stock market drop may show up as reduced red meat demand, which seemingly undercut cattle futures. October cattle futures declined 0.45 cents to 126.70 cents/pound around lunchtime Tuesday, and December sagged 0.42 cents to 129.75. September feeder cattle futures bounced 0.80 cents to 154.92 cents/pound in response to today’s corn losses, while November added 0.72 to 157.47.
Hog futures sustained their modest overnight advance. Stable cash prices west of the Mississippi River Monday afternoon seemingly supported hog futures overnight. Prices continued rising this morning, thereby seeming to reflect trader suspicions that the current heat wave will substantially hurt the performance of market hogs and reduce short-term supplies accordingly. October hog futures gained 0.35 cents to 86.37 cents/pound in late Tuesday morning action, while December lifted 0.30 cents to 83.37.