Ag markets were mixed again Tuesday afternoon
Mixed financial market action seemingly left corn unaffected Tuesday. That is, while the equity markets rebounded from recent losses, the U.S. dollar resumed its late rally, thereby offsetting the supportive stock market impact upon commodity demand. Nearby corn futures seemingly reflected firm cash trading, whereas improving crop conditions apparently weighed upon the deferred contracts. July corn futures rose 3.5 cents to $6.5675/bushel at its Tuesday close, while December dipped 2.0 cents to $5.445.
Soybean prices proved relatively strong in Tuesday trading. Traders cited the tight old crop situation for supporting the nearby bean and meal contracts, whereas limited farmer progress in completing soy plantings last week appeared to boost new crop prices. In contrast, ideas that beans will be aggressively crushed for meal may have undermined support for soyoil futures. July soybean futures jumped 14.0 cents to $15.2525/bushel late Tuesday afternoon, whereas July soyoil fell 0.44 cents to 47.14 cents/pound, while July soymeal surged $7.8 to $458.8/ton.
After a mixed start Tuesday, wheat futures moved generally lower Tuesday. Concerns about the slow pace of the winter wheat harvest offered support in early trading, but surprisingly good yields in some winter wheat areas seemed to undercut the markets, particularly Kansas City. July CBOT wheat declined 3.25 cents to $6.7575/bushel as Chicago trading would down, while July KCBT wheat dove 11.0 cents to $7.0425, and July MGE futures slipped 2.0 cents to $8.0925.
Cattle futures posted a mixed showing Tuesday. The positive influence of rebounding equity values was seemingly offset by the negative implications of concurrent U.S. dollar gains. Traders seemingly thought seasonal and technical factors were pointing upward, the midday drop in choice beef cutout probably undermined bullish arguments. August cattle settled 0.05 cents lower at 121.12 cents/pound Tuesday afternoon, while December inched up 0.07 cents to 126.77. Meanwhile, August feeder futures gained 0.20 cents to 147.87 cents/pound, whereas November skidded 0.07 cents to 152.87.
Hog futures proved vulnerable to fresh selling Tuesday. Although the wholesale market performed well again in morning trading, the late downturn in cash hog prices has probably persuaded many in the swine industry that the traditional second-half price decline has begun. July hog futures dropped 0.80 cents to 100.15 cents/pound as trading wound down Tuesday, and the December contract lost 0.27 cents to 82.60.