Corn futures are rallying Tuesday morning. Monday’s weekly USDA Crop Progress report stated the corn harvest as being just 31% complete, which apparently sparked a corn futures bounce from their overnight decline. Prospects for fine Midwest weather for harvesting through the end of the month may be limiting gains, but bulls are probably being joined by technicians. December corn futures rebounded 6.5 cents to $3.5475/bushel late Tuesday morning, while May climbed 6.5 to $3.77.
The soy situation seems relatively supportive at this point. The Crop Condition report also stated the soybean harvest below expectations, which accounts for a portion of the subsequent CBOT bounce. Talk of lagging soybean plantings in Brazil is reportedly encouraging bulls as well. Concurrent crude and palm oil rallies look supportive of oil prices. November soybean futures jumped 17.0 cents to $9.6125/bushel around midsession Tuesday, while December soyoil skidded 0.03 cents to 31.67 cents/pound, and December soymeal leapt $10.4 to $339.8.
Wheat markets are following corn and beans higher. Although traders reportedly hope U.S. wheat will be included in a pending announcement of a big Egyptian purchase, today’s rise probably owes more to strength spilling over from the bean and corn markets. Technicians may also be buying in anticipation of a decisive breakout above pivotal 40-day moving average resistance. December CBOT wheat surged 7.75 cents to $5.2125/bushel in Tuesday morning action, while December KC wheat moved up 4.5 cents to $6.055/bushel, and December MWE wheat rallied 7.75 to $5.725.
Cattle futures moved mostly higher Tuesday morning. Recent cash strength, rebounding equity markets and Monday afternoon beef strength seem to be boosting CME cattle futures this morning. Gains may be limited by worries that the market is vulnerable to a seasonal decline as the holiday season looms. December live cattle futures climbed 0.62 cents to 168.65 cents/pound just before lunchtime Tuesday, while April futures gained 0.57 to 165.35. Meanwhile, November feeder cattle futures slid 0.52 cents to 236.30 cents/pound and January feeders sagged 0.55 cents to 230.52.
Hopes for a wholesale bounce may be encouraging hog market bulls. Pork cutout values crashed over 4.0 cents Monday, which partially explains the big CME losses posted yesterday. However, the pork plunge was caused by a virtual collapse in ham values. Given traditionally strong ham demand during the run-up to the holiday season, pork prices seem likely to rebound somewhat. December hog futures dipped 0.40 cents to 88.75 cents/pound late Tuesday morning, while April hogs rose 0.15 to 87.12.