Corn futures continued rising Tuesday. Monday’s USDA reports proved supportive of the corn price outlook, thereby prompting substantial CBOT gains. The market kept rising today, with bullish technical action and talk of rain-slowed Midwest plantings likely encouraging bulls as well. May corn closed up 5.5 cents at $5.075/bushel Tuesday afternoon, while December advanced 7.25 to $5.055.
Talk of supply tightness seemed to boost the soy complex. Although Monday’s reports didn’t seem particularly bullish for the soy outlook, beans and meal posted sizeable gains. The oil market joined them in rising Tuesday, with trader talk citing the tightness of the old crop situation. The nearby contracts certainly led the way higher. May soybeans soared 20.5 cents to $14.845/bushel in late Tuesday trading, while May soyoil spiked 0.98 cents to 41.40 cents/pound, and May soymeal moved up $3.4 to $482.7/ton.
Weather news may have weighed upon wheat markets. Monday’s USDA data had little lasting impact upon wheat prices, with quotes at all three exchanges edging higher at the close. However, they reversed overnight and accelerated downward this morning, with improved mid-April precipitation forecasts seemingly depressing sentiment. May CBOT wheat futures dove 12.0 cents to $6.8525/bushel at their Tuesday settlement, while May KCBT wheat futures tumbled 10.5 cents to $7.535 and May MWE futures lost 7.5 cents to $7.3525.
Cash concerns seemed to drag cattle futures downward. Worries about the wholesale outlook seemed to weigh upon CME cattle prices late last week and again Monday. Beef prices firmed at midday, but futures continued sliding, which suggests industry pessimism about this week’s cash outlook. June cattle futures fell 1.03 cents to 136.47 cents/pound as Tuesday’s pit session ended, while December sagged 0.25 cents to 140.00. Meanwhile, May feeder cattle tumbled 1.07 cents to 176.77 cents/pound, and August dropped 1.03 to 178.37.
Hog traders seemed to discount the Hogs & Pigs report Tuesday. The CME hog market held up rather well Monday in response to the bearish data on last Friday’s quarterly USDA Hogs & Pigs report. In fact, futures turned strongly higher today, which very likely reflected widespread industry suspicions that the USDA had over-counted the number of pigs on farms last month. June hog futures climbed 0.42 cents to 127.60 late Tuesday afternoon, while December gained 0.95 to 91.15.