Corn futures proved rather weak again Monday night. Although the weekly USDA Crop Progress report stated the corn harvest as being just 31% complete yesterday afternoon, corn futures declined overnight. Prospects for fine Midwest weather for harvesting through the end of the month are apparently weighing on prices. December corn futures slipped 1.0 cent to $3.4725/bushel early Tuesday morning, while May slid 0.75 to $3.6975.
The soy situation seems somewhat more favorable for bulls. The Crop Conditions also stated the soybean harvest below expectations, which accounts for a portion of last night’s bounce. Talk of lagging soybean plantings in Brazil is reportedly encouraging bulls. Oil prices lagged despite crude and palm oil rallies posted last night. November soybean futures gained 3.0 cents to $9.4725/bushel Monday night, while December soyoil added 0.01 cents to 31.71 cents/pound, and December soymeal rose $1.3 to $330.7.
Wheat markets seem to be finding technical support. Wire service sources cited trader hopes that U.S. wheat will be included in a pending announcement of a big Egyptian purchase. One also has to suspect technicians are buying golden grain contracts in anticipation of a decisive breakout above their pivotal 40-day moving averages. December CBOT wheat rallied 3.25 cents to $5.1675/bushel in early Tuesday action, while December KC wheat edged up 1.0 cent to $6.02/bushel, and December MWE wheat bounced 2.75 to $5.695.
Cattle futures are mixed in early Tuesday trading. Recent cash strength, rebounding equity markets and Monday afternoon beef strength seemed likely to boost CME cattle futures this morning. However, the Chicago market is decidedly mixed, possibly in response to ideas that the market is vulnerable to a seasonal decline as the holiday season looms. December live cattle futures inched up 0.07 cents to 168.10 cents/pound in predawn Tuesday trading, while April futures dipped 0.32 to 164.45. Meanwhile, November feeder cattle futures fell 0.75 cents to 236.07 cents/pound and January feeders slumped 0.67 cents to 230.40.
Modest cash losses may have encourage hog market bulls. Pork cutout values crashed over 4.0 cents Monday, which partially explains the big CME losses posted concurrently. However, the afternoon reports also indicated that cash prices had not fallen very far, which probably accounts for the firmness exhibited by nearby hog futures last night. December hog futures rose 0.05 cents to 89.20 cents/pound early Tuesday morning, while April hogs advanced 0.42 to 87.40.
Cotton futures are struggling Tuesday morning. The weekly Crop Progress report stated current cotton conditions as being unchanged at 47% good to excellent. The harvest is 29% complete, thereby lagging the 10-year mean at 35% but well ahead of the 2013 pace. Nevertheless, Monday night’s weakness seemingly reflects the nearby contracts’ recent failure at short-term moving-average resistance. December cotton futures sagged 0.04 cents to 62.25 cents/pound shortly after dawn Tuesday, while March futures crept 0.03 cents lower to 61.67.