Corn futures seemed to suffer from pragmatic selling Tuesday. Monday’s monthly USDA WASDE report was seen as bullish for corn. CBOT futures reacted well to the news, but ended yesterday and today rather weakly. The nearby contracts are still trading above short-term moving average support, but pragmatic traders appeared to sell actively in response to the surprisingly weak reaction to the bullish news. March corn closed 1.5 cents lower at $4.415/bushel Tuesday, while May dipped 1.5 to $4.4725.
Firming cash prices reportedly boosted the soy complex Tuesday. Soybean and meal futures seemed headed substantially lower in early trading, especially after the bearish results of Monday’s WASDE report truncated what had looked like a bullish breakout on the charts. Nevertheless, early reports of surprising cash strength apparently triggered a fresh reversal by late morning. March soybeans climbed 9.25 cents to $13.3475/bushel at Tuesday’s close, while March soyoil rose 0.12 cents to 38.85 cents/pound, and March soymeal bounced $5.2 to $449.2/ton.
Wheat continued building on recent gains. The wheat markets posted varying gains Tuesday, due in part to the supportive nature of the WASDE data. The nearby Kansas City and Minneapolis contracts have also broken out above technical resistance, whereas Chicago prices struggled at comparable points. Concerns about Canadian transport problems boosted the Minneapolis market, while KC traders were worried about southern Plains dryness. March CBOT wheat futures advanced 5.5 cents to $5.9025/bushel at their Tuesday settlement, while March KCBT wheat futures gained 2.75 cents to $6.655, and March MWE futures surged 9.75 to $6.6125.
Talk of rising packer bids sent cattle futures higher. The cattle market began the week rather poorly, which probably reflected the negative influence of flat-to-weak wholesale prices. But packer buyers reportedly raised their bids for southern Plains cattle this morning, thereby spurring strong buying in the CME pit. April cattle futures leapt 1.00 cent to 141.17 cents/pound as Tuesday’s pit session ended, while August climbed 0.75 cents to 131.02. Meanwhile, March feeder cattle jumped 0.87 cents to 168.77 cents/pound, and May soared 0.82 to 170.35.
Hog futures sagged in Tuesday trading. The cash hog and wholesale pork markets again appeared to fall short of bullish expectations Monday, thereby undermining futures priced at substantial premiums to spot values. That seemed to be the case again today, as indicated by the general CME swine decline. April hogs sank 0.57 cents to 94.17 cents/pound as pit trading ended Tuesday, while June tumbled 0.75 to 104.67.