Ag markets proved widely mixed Tuesday morning

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Good crop prospects continue weighing on grain futures. The monthly USDA WASDE report is due out tomorrow (6/11), so traders are probably reducing large short positions ahead of the midday release. However, that buying is only slowing losses powered by benign Midwest weather and huge fall crop prospects. Monday’s Crop Progress report was very favorable for the corn crop. July corn slid 2.0 cents to $4.49/bushel late Tuesday morning, while December dipped 2.25 cents to $4.4775.

Bean traders reportedly expect a supportive WASDE report Wednesday. New crop beans continue performing well despite a strong harvest outlook, whereas old-crop beans are recovering from recent losses. An overnight report indicating the latest Chinese government sale of stockpiled beans went poorly due to quality issues is probably spurring purchases, but traders also appear to expect the WASDE report to again cut the 2013/14 carryout. Asian palm weakness is still weighing on oil. July soybeans rallied 13.75 cents to $14.7075/bushel around midsession Tuesday, while July soyoil sank 0.37 cents to 38.91 cents/pound, and July soymeal bounced $8.0 to $490.2/ton.

The wheat markets are facing renewed pressure. The weekly USDA Crop Progress report indicated good spring wheat prospects, while winter wheat ratings were unchanged once again. The lack of surprise associated with those results seemingly reopened the door to selling based upon the bearish global situation. July CBOT wheat futures tumbled 10.5 cents to $6.02/bushel in late Tuesday morning action, while July KCBT wheat dropped 8.5 cents to $7.2525 and July MWE futures sagged 6.0 to $6.985.

Cattle futures traded mixed Tuesday morning. Cash and wholesale beef prices have proven quite strong lately, thereby sparking a rally in discounted CME cattle futures. Prices dipped overnight, but persistent beef gains seem to be encouraging bulls in the nearby contracts. August cattle futures edged up 0.07 cents to 143.35 cents/pound as lunchtime loomed Tuesday, while December slipped 0.02 cents to 148.57. Meanwhile, August feeder cattle moved up 0.47 cents to 204.00 and October climbed 0.62 to 204.45.

Hog futures also turned mixed in early action. Hog futures followed the cattle market higher Monday, due in part to spillover strength and to technical factors. Monday’s big cash gains also encouraged bulls, whereas mixed-to-higher pork quotes likely slowed the advance. One has to suspect that market insiders aren’t seeing much follow-through this morning, since the July and August contracts reversed overnight gains. August hog futures fell 0.52 cents to 129.57 cents/pound around midsession Tuesday, while December stumbled 0.25 cents to 94.85.

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