Crop Progress data are apparently weighing on the crop markets. Monday’s USDA Crop Progress report stated last week’s corn harvest rate far above expectations, thereby sparking significant overnight selling. Wire service reports cited long-liquidation and talk of increased production forecasts on next week’s USDA reports for today’s follow-through losses. December corn futures tumbled 6.75 cents to $3.675/bushel late Tuesday morning, while May lost 6.75 to $3.88.
The soy complex also turned sharply lower Tuesday morning. The Crop Progress report indicated the soy harvest had surged 13% to 85% complete last week, thereby topping forecasts and undercutting prices. Concurrent losses in crude and palm oil values are depressing soyoil as well. Meal is holding up relatively well. January soybean futures fell 17.5 cents to $10.1225/bushel as the lunch hour loomed Tuesday, while December soyoil plunged 0.79 cents to 33.24 cents/pound, and December slumped $0.8 to $371.9/ton.
Wheat futures are following corn and beans lower. The Crop Progress report looked modestly bearish for wheat futures, due largely to the improved condition rating for winter wheat. The lack of supportive news for the golden grain markets probably rendered them vulnerable to the spillover selling. December CBOT wheat dipped 5.75 cents to $5.325/bushel in late Tuesday morning action, while December KC wheat sagged 5.5 cents to $5.92/bushel, and December MWE wheat sank 5.5 to $5.715.
Cattle traders seem to be awaiting developments. Although recent news hasn’t been very supportive of cattle futures, the situation remains very tight. Thus, cattle traders appear to be awaiting news at this point, with bulls and funds rolling longs out of the nearby contracts and into their spring/summer counterparts. December live cattle futures stumbled 0.45 cents to 166.60 cents/pound around midsession Tuesday, while April futures inched up 0.07 to 165.87. Meanwhile, January feeder cattle futures rallied 0.85 cents to 230.65 cents/pound, and March feeders climbed 0.52 to 227.45.
Hog futures couldn’t sustain early gains. As expected, Tuesday’s late spot market firmness translated into a strong CME hog opening this morning. However, trader suspicions that recent Chicago gains had already anticipated that strength and concerns about seasonally surging supplies apparently aborted the rally. December hog futures had edged up 0.05 cents to 88.90 cents/pound as lunchtime nearby Tuesday, while April hogs slid 0.50 to 89.20.