Corn futures slipped Monday night. News that corn condition ratings had dipped slightly on the weekly Crop Progress report supported CBOT futures in evening trading. However, the fact that bulls haven’t been able to push nearby futures above their 10-day moving averages suggests technical selling powered the subsequent setback. September corn dipped 2.75 cents to $3.65/bushel early Tuesday morning, while December lost 3.0 cents to $3.7375.
The soy complex also set back despite a lower crop rating. Soybean fields rated good-to-excellent on Monday’s Crop Progress report slipped from 73% to 71% last week. That seemingly encouraged bulls, which in turn seemed to point toward a significant follow-through to recent gains. Thus, the overnight reversal was quite surprising, especially since there is no news obviously driving the drop. August soybean futures fell 12.5 cents to $12.24/bushel soon after dawn Tuesday, while November futures dropped 12.25 cents to $10.955. August soyoil sank 0.21 cents to 36.31 cents/pound and August soymeal stumbled $4.3 to $398.5/ton.
The wheat markets moved mostly lower as well. The Crop Progress showed little change in spring wheat conditions, whereas traders may have been expecting a decline. When combined with an upward revision to Ukrainian production and export estimates, as well as news that Taiwan had rejected all offers on a feed wheat tender, those may explain the early-Tuesday slippage. September CBOT wheat sagged 1.75 cents at $5.33/bushel Monday night, while September KC wheat slipped 0.5 cents to $6.25/bushel, and September MWE wheat inched 0.25 cent lower to $6.21.
Cattle futures are mixed to higher Tuesday morning. Nearby cattle futures closed rather weakly Monday, ending the day well below their early highs. That weakness seemed to hamper bullish efforts overnight, despite afternoon news of continued wholesale strength. Traders probably worry about a looming ‘blow-off’ top. August live cattle skidded 0.07 cents to 158.97 cents/pound in early Tuesday action, but December gained 0.12 cents to 159.37. Meanwhile, August feeder futures climbed 0.60 cents to 220.77 cents/pound, and October feeders advanced 0.37 to 221.22.
Pork losses depressed hog futures Monday night. As indicated at noon yesterday, cash hog prices ended the day poorly. However, pork cutouts had risen sharply at midday, but were quoted significantly lower at the end of the day. That news is now undercutting CME prices. August hog futures dove 0.97 cents to 122.70 as Tuesday dawned over Chicago, while December slumped 0.85 cents to 96.50.
The USDA Crop Progress sank cotton futures overnight. After having stated U.S. good-to-excellent cotton 3% lower over the prior two weeks, Monday’s report boosted that percentage 2% to 54%. That probably reflected a substantial upward shift in Texas conditions, which, given the relative size of the Texas crop, bodes well for the U.S. harvest. December cotton tumbled 0.45 cents to 65.43 shortly after sunrise Tuesday, while March futures slid 0.38 cents to 66.25 cents/lb.