Ag markets proved decidedly mixed again Tuesday
Corn futures held at moving average support. Talk of large fall production depressed corn futures in early Tuesday trading. However, spillover strength from the wheat market and technical support at short-term moving averages seemed to spur late buying. CBOT futures edged slightly higher at the end of the day. September corn settled up 1.75 cents to $3.625/bushel Tuesday afternoon, while December inched 0.75 higher to $3.7225.
Talk of old crop tightness boosted nearby beans and meal. Demand strength and cash firmness reportedly spurred buying in of September beans and meal Tuesday. Conversely, new-crop futures remained generally weak as traders focused upon improved crop ratings and expectations for a massive fall harvest. September soybean futures climbed 4.75 cents to $11.2025/bushel at their Tuesday close, while November futures dropped 5.0 cents to $10.5275. September soyoil fell 0.30 cents to 32.66 cents/pound, but September soymeal surged $7.7 to $399.8/ton.
Reports of reduced Ukraine production may have sparked wheat buying. The wheat markets also declined Monday night, but have posted a rather impressive rebound today. The bounce seemingly reflected news that Ukrainian officials have cut their wheat production forecast by 15%, with much of the drop reflecting the loss of the Crimea. Funds may also have cut short holdings. September CBOT wheat gained 3.5 cents to $5.46/bushel in late Tuesday action, while September KC wheat rallied 6.75 cents to $6.245/bushel, and September MWE wheat jumped 8.5 to $6.1675.
Fresh demand concerns seemed to depress cattle futures. There was little news concerning the cattle/beef complex Tuesday, but traders apparently viewed the midsession drop in beef cutouts as a sign of things to come. Wire sources cited widespread long liquidation. October live cattle futures dove 1.32 cents to 147.22 cents/pound at their Tuesday close, while December futures tumbled 1.20 to 150.45 cents/pound. Meanwhile, September feeder futures plunged 1.82 cents to 214.25 cents/pound and November futures plummeted 2.15 cent to 212.55.
Hog futures proved quite mixed Tuesday. Recent cash and wholesale losses resumed Monday, but traders seemingly became more optimistic about a short-term bounce by late morning. The rally attempts were apparently capped by midday news of fresh pork losses. Nearby futures closed lower, whereas the 2015 contracts traded firmly. October hogs dipped 0.27 cents to 94.82 cents/pound as Tuesday’s pit session ended, while December dropped 0.25 cents to 88.62.
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