Corn futures may be deriving sustained support from Monday’s WASDE report. Yesterday’s monthly USDA WASDE report was seen as bullish for corn, since it contained an upward revision in exports and commensurate drop in the carryout forecast. Having CBOT futures set back from post-report highs was discouraging, but prices did edge upward again overnight. March corn slipped 0.25 cent to $4.4275/bushel early Tuesday morning, while May was flat at $4.4875.
The soy complex is under pressure in early Tuesday trading. Soybean and meal futures turned lower after Monday’s WASDE report was released. USDA boosted exports, but left predicted bean carryout unchanged, which apparently disappointed traders. Oil proved relatively strong yesterday, but slipped along with beans and meal overnight. The fact that beans failed technically Monday is probably exaggerating current weakness. March soybeans tumbled 12.0 cents to $13.135/bushel in early Tuesday action, while March soyoil sank 0.16 cents to 38.57 cents/pound, and March soymeal dropped $5.2 to $438.8/ton.
Wheat continued building on recent gains Monday night. The wheat markets rose modestly in overnight action, with supportive data in the WASDE report apparently reinforcing recent bullishness. The nearby Kansas City and Minneapolis contracts have also broken out above technical resistance, but Chicago prices are struggling at comparable points. March CBOT wheat futures climbed 3.25 cents to $5.88/bushel just before dawn Tuesday, while March KCBT wheat futures gained 3.75 cents to $6.665, and March MWE futures rallied 3.25 to $6.5475.
Cattle futures remain under pressure Tuesday morning. After posting a sharp advance last Friday, cattle futures have begun this week under downward pressure. The rally likely reflected bullish cash expectations, but the wholesale slippage suffered since that time is discouraging traders. April cattle futures slumped 0.27 cents to 139.90 cents/pound in early Tuesday trading, while August dropped 0.15 cents to 130.12. Meanwhile, March feeder cattle bounced 0.05 cents to 167.95 cents/pound, but May skidded 0.07 to 169.45.
Hog futures continued their late Monday decline last night. The cash hog and wholesale pork markets have fallen short of bullish expectations lately, thereby undermining futures trading at substantial premiums. That seemed to be the case again last night, since cash quotes rose only slightly Monday, while wholesale gains varied widely. April hogs dove 0.65 cents to 94.10 cents/pound as Tuesday dawned over Chicago, while June fell 0.72 to 104.70.
Cotton futures continued sliding Monday night. The ICE cotton market began the week strongly, but reversed after the WASDE report was released. Although the global numbers seemed bullish, traders were apparently disappointed that the U.S. export forecast was not increased. The fact that nearby futures failed in a breakout attempt is probably exacerbating post-report weakness. March cotton slid 0.38 cents to 86.99 cents/pound just after sunrise (EST) Monday, while July cotton sagged 0.34 to 86.84.