Corn futures were mostly lower Tuesday morning. The tight old crop situation seemingly reemerged as a supportive factor for nearby September futures. However, favorable weather forecasts and improved ratings on the weekly USDA Crop Progress report Monday afternoon continued weighing upon the deferred contracts. September corn rose 2.5 cents to $4.7175/bushel around midsession Tuesday, while December dipped 2.5 cents to $4.58.
The soy complex suffered a general decline in early Tuesday trading. Although nearby soymeal prices seemed to garner early support from tightness in the old crop situation, across-the-board losses were the rule by late morning. As with corn, the improved crop ratings posted on the Monday afternoon Crop Progress report seemed to drag new crop prices downward. September soybean futures fell 7.0 cents to $12.005/bushel just before lunchtime Tuesday, while November beans dropped 11.25 cents to $11.72. September soyoil tumbled 0.56 cents to 42.26 cents/pound, while September soymeal sank $2.4 to $374.7/ton.
Wheat continues performing well despite current bearish conditions. Ongoing corn and soy losses are probably weighing somewhat upon wheat as well, especially since the Crop Progress report also implied favorable conditions for wheat production. The looming end to the winter wheat harvest, as well as widespread reports of buying around the globe (with U.S. product likely getting only a modest share of the action) appear to be supporting the market. September CBOT wheat edged up 1.5 cents to $6.4675/bushel by late Tuesday morning, while September KCBT wheat climbed 3.0 cents to $6.985, and September MGE futures advanced 3.5 cents to $7.3725.
The cattle complex seemed to benefit from spillover hog strength. As usual, there has been very little country trading of fed cattle this week. But while substantial deliveries against August futures and slipping choice cutout seem negative for cattle futures, particularly since Chicago prices are quoted well above spot values, cattle and feeder futures rose moderately this morning. Strong hog and pork gains appear to be spilling over into the cattle and feeder pits. October cattle rallied 0.22 cents to 124.77 cents/pound around midday Tuesday, while December added 0.32 to 127.35. September feeder cattle futures surged 0.85 cents to 157.85 cents/pound, and November lifted 0.07 to 160.07.
Lean hog futures continued their rally in AM Tuesday trading. The wholesale and cash markets resumed their late gains in early trading, which quickly spilled over into the Chicago market. The bullish implications of Monday’s big surge probably encouraged buying as well. October hog futures jumped 0.80 cents to 86.30 around midsession Tuesday, while December bounded upward 0.60 cents to 82.80.