Corn and beans couldn’t sustain early Tuesday gains. The planted acreage report from the USDA’s FSA division made few major changes to its August numbers, but traders unfamiliar with the data apparently reacted strongly to the news, since corn and soybeans rallied strongly in early morning trading. However, further consideration seemed to spark selling, with nearby futures declining slightly around midsession. December corn lost 1.25 cents to $4.5525/bushel late Tuesday morning, while May slid 1.75 cent to $4.755.
Soybeans reversed sharply from early highs. The FSA report also indicated major reduction in soybean acreage due to failed plantings and ‘prevented’ plantings. That news also seemed to boost the soy complex in early trading. However, the reductions were actually smaller than those stated on the August report, which very likely explains the subsequent reversal to the downside. November soybeans tumbled 12.0 cents to $13.3625/bushel just before lunchtime Tuesday, while October soyoil slumped 0.17 cents to 41.96 cents/pound, and October soymeal sank $4.0 to $427.2/ton.
The wheat markets continue following corn and soybeans. The Crop Progress report stated the spring wheat harvest and winter wheat plantings near expected levels Monday, so traders probably paid it little attention. Ultimately, early morning gains and the subsequent setback made it rather clear that wheat futures were largely following the lead of the corn and soybean markets. December CBOT wheat had inched up 0.75 cent to $6.42/bushel as the lunch hour loomed Tuesday, while December KCBT wheat lifted 1.0 cents to $6.9075, but December MGE futures dipped 0.75 cent to $7.01.
Cattle futures declined Tuesday morning. The latest wholesale data indicated mixed readings for beef cutout Monday afternoon, which probably disappointed bulls in the CME pit. That is, they were probably hoping resurgent beef prices would spark a cash market advance during the days and weeks ahead. That may still happen, but the bulls are rather clearly less confident at this point. October cattle futures dropped 0.57 cents to 124.97 cents/pound around midsession Tuesday, while December sagged 0.70 to 128.52. Meanwhile, October feeder cattle plunged 1.35 cents to 158.15 cents/pound, and January dove 1.15 cents to 158.80.
Wholesale weakness undercut hog futures in early action. Tight hog and pork supplies have been boosting prices across the complex lately, with Monday’s strong gains exemplifying the upward trend. However, traders were apparently surprised when large wholesale losses posted at noon yesterday were confirmed later in the day. That weakness probably depressed prices overnight and kept the pressure on this morning. October hog futures fell 0.47 cents to 91.65 cents/pound late Tuesday morning, while December skidded 0.20 cents to 88.27.