Harvest news reportedly depressed corn futures Tuesday. Although corn futures benefited from strength spilling over from the soybean and wheat pits early this morning, prices turned decidedly lower a bit later. Talk that the corn harvest is accelerating and yields are topping expectations reportedly sent prices lower in late-morning action. December corn futures fell 8.25 cents to $4.41/bushel around midsession Tuesday, while May dropped 7.75 cents to $4.62.
Soybeans also fell despite supportive developments this morning. Wire service reports indicated that country soybean values were steady-firm Tuesday morning. In addition, the soyoil market got a significant boost from rising Asian palm oil quotes. Nevertheless, soybeans and meal lost significant ground, thereby seeming to reflect harvest pressure as well. November soybeans dove 11.5 cents to $12.85/bushel in late Tuesday morning action, while December soyoil bounced 0.34 cents to 40.24 cents/pound, and December soymeal tumbled $6.5 to $414.2/ton.
Wheat futures turned mixed late Tuesday morning. The KC and Minneapolis markets continued their recent advance, but Chicago prices were slightly lower. The same supply and demand issues powering the late rally are still in place, so we are almost forced to think that the failure of a large soft wheat tender from Morocco undercut the CBOT market for some reason. December CBOT wheat sagged 1.5 cents to $6.9325 bushel just before lunchtime Tuesday, while December KCBT wheat gained 4.0 cents to $7.605, and December MGE futures added 2.75 cents to $7.53.
Cash optimism seemed to boost cattle futures Tuesday morning. Few delivery were posted again expiring October cattle futures Monday evening (first notice day), which encouraged CME traders. That is, the sizeable October premium appeared quite attractive to producers, so the lack of deliveries suggests they’re quite optimistic about the likely outcome of this week’s cash trading. December cattle futures edged up 0.05 cents to 132.32 in late-morning action, but April skidded 0.15 cents to 135.00. Meanwhile, November feeder cattle jumped 0.77 cents to 166.25 cents/pound, and January surged 0.65 to 166.43.
Hog traders appear ambivalent about market direction today. News of a salmonella outbreak in California chicken may be supporting hog futures this morning, since consumers may switch to pork in response to that news. However, the generally uncertain environment, especially when the lack of USDA data is considered may be limited traders’ willingness to take on risk at this point. December hog futures moved 0.02 cents higher to 87.90 cents/pound by late Tuesday morning, while April declined 0.12 cents to 90.42.