Corn futures bounced slightly Tuesday morning. Corn futures seemed headed lower Monday night, especially after China rejected a cargo carrying an unapproved GMO corn variety. However, prices bounced modestly in early morning action. That probably reflects technical factors, particularly the fact that futures are approaching oversold levels. December corn futures rose 1.5 cents to $4.135/bushel around dawn Tuesday, while May added 2.0 to $4.3125.
Competing production and demand forces made for mixed soy prices. Strong export data boosted the soy complex Monday, but traders also remain keenly aware of the potential for large South American crops in light of recent favorable weather. Thus, soybeans and oil slipped overnight, whereas meal futures advanced slightly. January soybean futures slid 1.25 cents to $12.8625/bushel in early Tuesday trading, and December soyoil skidded 0.10 cents to 40.01 cents/pound, while December soymeal gained $0.5 to $416.3/ton.
A dip in winter wheat ratings likely boosted futures. 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 the ‘good’ to ‘excellent’ ratings, which apparently prompted moderate buying in the various wheat markets. December CBOT wheat futures rallied 3.75 cents to $6.46/bushel early Tuesday morning, while December KCBT wheat futures rallied 3.25 to $6.9725, and December MWE futures moved up 3.0 to $6.9825.
Cattle futures remain weak Tuesday morning. Wire service sources cited demand concerns and technical factors for Monday’s surprising drop in cattle futures. The slide continued overnight, with a moderate decline in choice cutout values seeming likely to have exerted fresh downward pressure. A technical follow-through to yesterday’s dive seems rather likely. December cattle futures sank 0.25 cents to 131.65 cents/pound as Tuesday dawned over Chicago, while April futures sagged 0.25 to 133.55. Meanwhile, January feeder cattle edged 0.22 cents lower to 164.07 cents/pound, and March feeders tumbled 0.62 cents to 163.97.
Concerns about increasing supplies kept depressing hog futures. Swine traders are apparently worried about the bearish impact of rising hog supplies over the short run. They were probably encouraged by Monday’s wholesale strength, but across-the-board cash losses offset such bullish influences. December hog futures fell 0.42 cents to 85.17 cents/pound in early Tuesday action, while April dropped 0.37 to 91.92.
Cotton futures were mixed Monday night. Although the weekly Crop Progress report indicated that the cotton harvest continues lagging, that news did little to support cotton futures overnight. The expiring December future continued its late slide, whereas the most-active March future rose slightly. December cotton slumped 0.02 cents to 76.35 cents/pound just after sunrise Tuesday, while March cotton bounced 0.10 to 77.81.