The corn market suffered persistent pressure Tuesday. Monday’s quarterly USDA Grain Stocks report stated U.S. corn inventories above forecast levels, thereby suggesting they’re ample to current needs. Given widespread expectations for a record 2013 harvest, and ongoing cash market losses, it wasn’t terribly surprising to see prices remain under general pressure today. December corn dipped 2.5 cents to $4.395/bushel at its Tuesday close, and May lost 1.25 cents to $4.61.
Cash weakness reportedly undercut the soy complex. The Grain Stocks report also held bearish implications for the soybean outlook, since the stated inventory topped most predictions. As with corn, talk of accelerating declines at various Corn Belt markets extended the bearish post-report reaction. November soybeans fell 14.75 cents to $12.68/bushel as trading ended Tuesday, while December soyoil dove 0.83 cents to 40.27 cents/pound, and December soymeal declined $2.1 to $403.3/ton.
The wheat markets performed well again Tuesday. Monday’s reports held mixed implications for the wheat outlook, which largely explained their relatively firm post-report performance. However, prices rallied later in Tuesday’s session in apparent response to strong export prospects, which probably reflected stories of acreage cuts in Ukraine and talk that they won’t sell wheat to China this year. December CBOT wheat closed 2.75 cents higher at $6.8125 bushel Tuesday afternoon, while December KCBT wheat added 5.5 cents to $7.45, and December MGE futures surged 8.0 cents to $7.3625.
Cattle futures continued their decline Tuesday. Despite significant signs of strength at the cash and wholesale markets lately, cattle futures suffered from persistent selling in Tuesday CME trading. Talk that cash prices may decline later this week was seemingly exaggerated by the federal government shutdown, since most pertinent information comes from the USDA. December cattle futures sank 0.07 cents to 131.90 cents/pound at Tuesday’s settlement, while April ended unchanged at 134.57. Meanwhile, November feeder cattle rallied 0.85 cents to 166.05 cents/pound, and January ran up 1.20 to 165.20.
Cash losses may have depressed hog futures. As with cattle, the lack of news from the USDA may be undercutting the hog and pork complex. Moreover, country reports suggest cash hog values continued their late slide Tuesday, thereby giving rise to ideas that the market is very much involved in its usual autumn breakdown at this point. December hog futures tumbled 0.72 cents to 85.90 cents/pound late Tuesday afternoon, while April dropped 0.42 cents to 88.82.