The crop markets bounced Monday night. The weekly USDA Crop Progress report held few surprises, with current corn conditions being largely unchanged. Thus, traders seemed to think the market has already incorporated huge fall supplies into current values. September corn rose 1.5 cents to $3.655/bushel early Tuesday morning, while December added 1.5 cents to $3.735.
The soy complex also moved mostly higher. The Crop Progress report actually rose 1 percentage point to 73% rated good to excellent, which represents a 20-year high. Traders reportedly expected an unchanged reading, but overnight firmness suggests the higher number was no surprise. Old crop futures led the complex upward. August soybean futures rallied 11.75 cents to $11.875/bushel Monday night, while November futures edged up 0.5 cent to $10.72. August soyoil gained 0.16 cents to 36.30 cents/pound, and August soymeal advanced $5.0 to $385.7/ton.
Wheat futures are gaining ground as well. As with the other crops, the wheat readings on the Crop Progress report provided no surprises. That probably opened the door to a technical bounce from recent losses. The fact that CBOT prices remain above last week’s lows may have sparked some short covering. September CBOT wheat rebounded 4.5 cents to $5.345/bushel in early Tuesday trading, while September KC wheat climbed 4.0 cents to $6.32/bushel, and September MWE wheat moved up 2.75 cents to $6.26.
Wholesale strength continues boosting CME cattle Tuesday morning. The cattle and beef complex has confounded widespread expectations of seasonal weakness in late spring and summer. Indeed, Monday’s strong wholesale gains seemingly persuaded traders that cash cattle prices will remain firm again this week. August live cattle climbed 0.37 cents to 153.32 cents/pound as Tuesday dawned over Chicago, while December lifted 0.27 cents to 155.62. Meanwhile, August feeders leapt 1.00 cent to 214.02 cents/pound, and October surged 0.70 to 214.60.
Slumping cash and pork quotes are undercutting hog futures. The cash hog markets have seemingly passed an early-summer peak, thereby spurring CME sales. The fact that cash prices declined Monday, while pork cutouts dove almost surely sparked follow-through selling last night. August hog futures slipped 0.02 cents to 125.07 cents/pound early Tuesday morning, while December sank 0.32 cents to 103.57.
Worsening Texas conditions may be boosting cotton futures. The weekly Crop Progress report stated U.S. cotton conditions rated good to excellent down one point to 52%. That figure and increased readings at the lower end of the spectrum reflect declining conditions in Texas. Given the importance of that state’s crop, the overnight rally wasn’t terribly surprising. December cotton bounced 0.79 cents to 68.48 cents per pound shortly after sunrise Tuesday, while March futures improved 0.66 to 69.14 cents/lb.