Corn futures bounced slightly Tuesday morning. Corn futures seemed headed lower Monday night, especially after China rejected a cargo carrying an unapproved GMO corn variety. However, prices bounced modestly this morning. The rebound probably reflects technical factors, as well as talk current depressed values will spark resurgent export buying. December corn futures rose 0.75 cent to $4.1275/bushel around midsession Tuesday, while May was flat at $4.2925.
Talk of rising South American production may be depressing soy prices. Strong export data supported the soy complex Monday and again this morning. However, traders remain keenly aware of the potential for large South American crops in light of recent favorable weather. Thus, soybean and product values declined modestly in early action. January soybean futures fell 16.75 cents to $12.7075/bushel late Tuesday morning, while December soyoil skidded 0.21 cents to 39.90 cents/pound, and December soymeal dropped $9.5 to $406.3/ton.
A dip in winter wheat ratings likely supported futures this morning. Monday’s weekly USDA Crop Progress report was expected to show another modest improvement in winter wheat ratings last week. Instead, it indicated a slight decline in high quality ratings; that apparently prompted moderate buying in the various wheat markets. December CBOT wheat futures inched up 1.25 cents to $6.435/bushel Tuesday morning, while December KCBT wheat futures sagged 1.0 to $6.93, and December MWE futures dipped 0.75 to $6.945.
Talk of weak wholesale demand is undercutting cattle futures. Although cash cattle prices matched record highs last week, choice grade beef values have been slipping. Traders reportedly worry that cheaper pork and poultry products will undermine the cattle and beef complex through late fall and winter. December cattle futures sank 0.82 cents to 131.07 by late Tuesday morning, while April futures dove 0.97 to 132.82. Meanwhile, January feeder cattle plummeted 1.57 cents to 162.72 cents/pound, and March feeders plunged 1.82 cents to 162.77.
Contradictory cash and wholesale quotes are limiting hog moves. Cash hog prices fell and pork values rose Monday. Prices at those levels evidently reversed this morning, thereby robbing CME traders of clear signals and limiting moves in either direction. December hog futures slid 0.17 cents to 85.42 cents/pound as lunchtime loomed Tuesday, while April crept up 0.10 to 92.40.