The corn market closed weakly Tuesday. After surging on weather and trade news Monday, corn futures recoiled from chart resistance overnight despite supportive results on the Crop Progress report. Ultimately, talk that the results of a big crop tour were pointing to surprisingly large yields may have caused the drop. September corn fell 9.5 cents to $4.8375/bushel Tuesday afternoon, while December dove 10.0 cents to $4.755.
The soy complex also reversed after Monday’s big rally. Weather forecasts, export news and the weekly Crop Progress report boosted soybean futures to start the week. However, the legume markets turned lower in concert with corn, with chart resistance seemingly halting the rise and talk of bearish crop tour results undercutting prices. September soybeans dropped 12.75 cents to $13.0925/bushel at Tuesday’s settlement, and November beans sank 12.75 to $12.905. September soyoil tumbled 0.57 cents to 42.88 cents/pound, while September soymeal slid $6.5 to $413.8/ton.
Wheat futures followed corn and beans lower Tuesday. There has been little real news concerning the golden grain lately, which at least partially explains its close correlation to recent shifts in corn and soybean prices. Ultimately, the substitution effect between the grains affects their pricing. Thus, wheat seems likely to continue tracking corn price shifts over the short term. September CBOT wheat closed 7.25 cents lower at $6.3425/bushel Tuesday, while September KCBT wheat tanked 6.5 cents to $6.9675, and September MGE futures lost 10.25 cent to $7.35.
Cattle futures were generally mixed in late Tuesday trading. Choice beef cutout values rose moderately Monday evening, which encouraged ideas that packers will raise their bids for fed cattle again later this week. However, sizeable futures premiums and mixed noon beef quotes rather clearly handicapped bullish efforts. October cattle futures rose 0.07 cents to 128.15 cents/pound in late Tuesday action, while December gained 0.12 cents to 130.57. September feeder cattle futures rallied 0.30 cents to 158.25 cents/pound as corn sank, and November added 0.25 cents to 160.72.
The CME hog market also ended Tuesday in mixed fashion. Cash and wholesale markets proved rather weak again around midsession, which suggests growing seasonal weakness. However, large discounts already built into Chicago prices give them considerable room to rise if conditions don’t prove as bearish as generally anticipated. October hog futures settled 0.47 cents higher at 86.95 cents/pound Tuesday, while December edged up 0.30 cents to 83.75.