Ag markets posted a general advance Tuesday night

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Corn futures bounced modestly Tuesday night. Although the WASDE report implied a tighter corn situation than in November, the revisions were smaller than traders expected. When combined with negative numbers in beans and wheat, that result weighed upon future. However, recent CBOT strength seemed to reassert itself overnight, with good bean news likely adding support as well. March corn futures rose 0.75 cent to $4.3675/bushel early Wednesday, while May added 0.75 cent to $4.4525.

International news supported the soy complex overnight. A surprising increase in forecast global soybean carryout on Tuesday’s WASDE report undercut CBOT prices, but the soy markets rebounded modestly early this morning. That strength almost surely reflected news of a big South Korean meal tender, along with a reduced Chinese bean production figure from that country’s sources. Those developments seemed to overrule the negative influence of a palm oil decline upon bean oil prices. January soybeans bounced 3.25 cents to $13.415/bushel in Tuesday night trading, while January soyoil surged 0.20 cents to 40.31 cents/pound, and January soymeal gained $1.5 to $439.8/ton.

Wheat also rebounded slightly from Tuesday’s report-driven drop. The USDA WASDE report boosted global wheat carryout by 4.3 million tonnes, thereby sparking a sizeable futures drop. Still, golden grain prices also made a modest comeback last night. That may simply reflect ideas that last week’s upward revisions to Australian and Canadian production totals and the subsequent futures losses had already incorporated much of the bearish news into prices. March CBOT wheat futures advanced 1.0 cent to $6.3975/bushel early Wednesday morning, while March KCBT wheat futures edged up 0.25 cent to $6.845, and March MWE futures lifted 2.25 to $6.7025.

Cattle futures also came back somewhat Tuesday night. Talk of increased short-term supplies and slipping beef prices probably depressed cattle futures Tuesday, but prices bounced slightly in early morning trading. Ultimately, the fact that feedlot supplies are declining seasonally and might be diminished by wintry weather will very likely provide a consistent floor for prices this winter. February cattle futures rebounded 0.32 cents to 132.97 around dawn Wednesday, with April adding 0.25 cents to 134.10. Meanwhile, January feeder cattle crept up 0.12 cents to 165.67 cents/pound, but March feeders slipped 0.02 to 165.45

Hogs futures firmed in early morning action as well. Talk that pork packers have already met their hog supply needs for this week reportedly undercut the CME swine market Tuesday. Weak afternoon cash quotes largely confirmed the implied weakness. Nevertheless, 2014 futures rebounded slightly overnight, which probably reflected the general optimism about the early-winter outlook. February hog futures moved up 0.15 cents at 88.87 cents/pound early Wednesday morning, while June bounced 0.07 to 100.17.

Cotton built upon Tuesday’s modest gains. Tuesday’s USDA report slightly reduced the estimate of the 2013 U.S. cotton crop and chopped 500,000 bales from the forecast Chinese result, thereby prompting a moderate rally in ICE prices. That fact that analysts still expect a huge global stockpile next year probably limited gains. A general lack of fresh news last night apparently left the market open for more of the same. March cotton futures inched up 0.16 cents to 80.85 cents/pound just after sunrise Wednesday, while July cotton gained 0.07 cents to 80.71.

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