Old crop conditions and weather forecasts continue affecting corn futures. The cash markets reportedly sustained their recent rally in response to supply tightness Tuesday morning. That supported old crop futures. Meanwhile, worries that hot, dry conditions will prevail when the 2013 crop is pollinating boosted new crop values. September corn futures climbed 9.25 cents to $5.425/bushel Tuesday morning, while December added 9.25 cents to $5.0975.
Soybeans and meal surged in concert with corn Tuesday morning. The old crop situation remains extremely tight, thereby sending the expiring July contracts to highs not seen since last summer. As in the corn pit, concerns about the potential negative impact summer weather might have upon late-2013 production boosted deferred futures. However, soybean oil continued suffering from its position on the wrong side of the crush spread. August soybean futures jumped 10.75 cents to $14.6625/bushel around midsession Tuesday and August soymeal surged $6.6 to $448.7/ton, whereas August soybean oil dipped 0.19 cents to 46.77 cents/pound.
The wheat markets rallied strongly Tuesday morning. Hopes for continued export demand from China apparently provided a great deal of support for prices, with old crop corn and bean tightness also seeming to boost the nearby spring wheat contracts. The price strength is quite impressive, since it is occurring with the winter wheat harvest in full swing. September CBOT wheat leapt 17.5 cents to $6.805/bushel just before lunchtime Tuesday, while September KCBT wheat soared 17.25 cents to $7.0625, and September MGE futures zoomed 11.25 cents to $7.7225.
Cattle futures proved surprisingly mixed Tuesday morning. Prices came under early pressure, which apparently reflected sizeable wholesale losses posted late Monday afternoon. However, hopes that summer cash market lows might now be on the board, which is seemingly encouraging bullish interest. Feeder futures turned downward as the grain and soy markets advanced. August cattle edged up 0.20 cents to 122.27 cents/pound around midsession Tuesday, while December slipped 0.27 cents to 128.17. August feeder futures sank 0.47 cents to 151.12 cents/pound, while November fell 0.67 cents to 56.10.
Hog futures rebounded unevenly in early Tuesday action. Worries about the summer outlook apparently prompted the big drop suffered Monday, but the afternoon wholesale report proved very supportive. Moreover, the August contract is now trading at a substantial discount to the cash equivalent price. On the other hand, the summer 2012 decline was even larger. August hog futures skidded 0.17 cents to 95.37 cents/pound late Tuesday morning, while the December contract crept up 0.05 to 81.00.