Corn futures bounced slightly Tuesday. Corn futures seemed headed lower Monday night, especially after China rejected a cargo carrying an unapproved GMO corn variety. However, prices bounced modestly in Tuesday trading. The rebound probably reflects technical factors, as well as talk that current depressed values will spark resurgent export buying. December corn futures rose 5.75 cent to $4.1775/bushel at their Tuesday close, while May rallied 5.5 to $4.3475.
Talk of rising South American production may have depressed soy prices. Strong export data supported the soy complex Monday and again this morning. However, traders remain keenly aware of the potential for large South American crops in light of recent favorable weather. Thus, soybean and product values declined substantially later in the day. January soybean futures fell 11.25 cents to $12.7625/bushel in late Tuesday trading, while December soyoil skidded 0.12 cents to 39.99 cents/pound, and December soymeal dropped $6.9 to $408.9/ton.
A dip in winter wheat ratings likely supported futures Tuesday. Monday’s weekly USDA Crop Progress report was expected to show another modest improvement in winter wheat ratings last week. Instead, it indicated a slight decline in high quality ratings. Traders were also reportedly energized by talk of improving export demand. The fact that futures performed well as soybeans sank likely encouraged bulls as well. December CBOT wheat futures surged 8.0 cents to $6.5025/bushel into their Tuesday settlement, while December KCBT wheat futures climbed 4.5 to $6.985, and December MWE futures gained 2.5 to $6.9775.
Talk of weak wholesale demand undercut cattle futures. Although cash cattle prices matched record highs last week, choice grade beef values continued sliding today. Traders reportedly worry that cheaper pork and poultry products will undermine the cattle and beef complex through late fall and winter. December cattle futures sank 0.95 cents to 130.95 as Tuesday’s pit session ended, while April futures dove 1.57 to 132.22. Meanwhile, January feeder cattle plummeted 1.90 cents to 162.40 cents/pound, and March feeders plunged 1.95 cents to 162.65.
Contradictory cash and wholesale quotes limited hog moves. Cash hog prices fell and pork values rose Monday. Those prices shifts were then reversed Tuesday morning, thereby robbing CME traders of clear signals and limiting moves in either direction. December hog futures settled 0.17 cents lower at 85.42 cents/pound Tuesday, while April ran up 0.45 to 92.75.