Ag markets turned decidedly mixed Tuesday morning

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Corn bounced from technical support Tuesday morning. Corn reacted rather poorly to Monday’s USDA report despite trader views that it was price supportive. Weakness spilling over from the soy market likely depressed corn as well. Thus, it isn’t terribly surprising to see the yellow grain rebounding in concert with beans and wheat this morning, especially after short-term chart support held overnight. May corn rose 3.25 cents to $4.815/bushel by late Tuesday morning, while December added 1.25 to $4.7925.

The soy complex came back from Monday night lows. The USDA WASDE report was less supportive than many expected, thereby causing a Monday breakdown and follow-through losses last night. However, support associated with the nearby contracts’ 10-day moving averages held in early trading, which apparently prompted fresh CBOT buying. May soybeans had declined only 2.5 cents to $14.1625/bushel around midsession Tuesday, while May soyoil bounced 0.07 cents to 43.93 cents/pound, and May soymeal slumped $0.7 to $444.0/ton.

Talk of persistent dryness boosted the wheat markets this morning. Wheat futures were seemingly dragged downward by the soy complex Monday, so it wasn’t terribly surprising to see golden grain prices rebound after beans stabilized this morning. Fresh concern about the impact of dryness in winter wheat growing areas reportedly spurred buying as well. May CBOT wheat futures climbed 9.75 cents to $6.505/bushel in late Tuesday morning action, while May KCBT wheat futures surged 9.25 cents to $7.205 and May MWE futures gained 6.25 to $6.99.

Cattle futures are still trading in mixed fashion. Despite continued wholesale strength and a sizeable discount to cash prices, the nearby April cattle contract reflects industry uncertainty about the short-term outlook. The deferred contracts are also fluctuating around unchanged levels as traders worry about consumer reaction to record cattle and beef prices. April cattle futures lifted 0.32 cents to 143.47 cents/pound just before lunchtime Tuesday, while August sagged 0.22 cents to 134.22. Meanwhile, April feeder cattle edged down 0.12 cents to 175.60 cents/pound, and August lost 0.12 to 177.87.

Hog futures seemed to lose their upward momentum this morning. Talk of sharply reduced hog supplies this spring and summer, along with surging cash and wholesale values have powered the stunningly large hog rally posted lately. However, after surging to fresh records in early trading, CME futures turned mixed around midmorning. Much depends upon forthcoming cash and wholesale reports. April hogs were trading just 0.12 cents higher at 116.12 cents/pound late Tuesday morning, while June rose 0.20 to 123.70.

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