Good crop prospects continued weighing on grain futures Tuesday. The monthly USDA WASDE report is due out tomorrow (6/11), so traders were apparently reducing large short positions ahead of the midday release. However, that buying only slowed losses powered by benign Midwest weather and huge fall crop prospects. Monday’s Crop Progress report was very favorable for the corn crop. July corn slid 5.5 cents to $4.455/bushel at Tuesday’s close, while December dipped 5.0 cents to $4.45.
Bean traders reportedly expect a supportive WASDE report Wednesday. New crop beans again performed well despite a strong harvest outlook, whereas old-crop beans recovered from recent losses. A Monday night report indicating the latest Chinese government sale of stockpiled beans went poorly due to quality issues probably spurred some buying, but traders also appeared to expect the WASDE report to again cut the 2013/14 carryout. Asian palm weakness weighed on oil. July soybeans settled up 5.5 cents to $14.625/bushel Tuesday, while July soyoil sank 0.34 cents to 38.94 cents/pound, and July soymeal bounced $2.3 to $484.5/ton.
The wheat markets suffered from renewed pressure. The weekly USDA Crop Progress report indicated good spring wheat prospects, while winter wheat ratings were unchanged once again. The lack of surprise associated with those results seemingly reopened the door to selling based upon the bearish global situation. July CBOT wheat futures tumbled 11.25 cents to $6.0125/bushel in late Tuesday trading, while July KCBT wheat dropped 7.75 cents to $7.26 and July MWE futures sagged 5.0 to $6.995.
Cattle futures posted a strong comeback Tuesday afternoon. Cattle futures dipped Monday night and remained weak this morning, which likely reflected industry expectations for seasonal weakness. However, midday beef cutouts built upon Monday’s gains, thereby suggesting persistent cash firmness. August cattle futures advanced 0.12 cents to 143.40 cents/pound at their Tuesday settlement, which December matched in reaching 148.72. Meanwhile, August feeder cattle leapt 1.65 cents to 205.17 and October soared 1.82 to 205.65.
Hog futures turned mixed Tuesday. Hog futures followed the cattle market higher Monday, due in part to spillover strength and to technical factors. Big cash gains also encouraged bulls, whereas mixed-to-higher pork quotes likely slowed the advance. Pork quotes were generally lower at noon, which may explain the mixed CME action later in the day. August hog futures closed 0.35 cents lower at 129.75 cents/pound Tuesday, while December rose 0.05 cents to 95.15.