Corn futures slipped again overnight. The weekly USDA Crop Progress report stated corn conditions 2% lower than the week prior, which matched official surveys, but the Chicago slippage suggests many traders were looking for a larger reduction. Concurrent soybean losses may also have depressed corn values. December corn slid 0.25 cent to $4.6325/bushel early Tuesday morning, while May crept up 0.25 cent to $4.85.
The soy complex extended its Monday losses. The Crop Progress report also indicated a two percentage point decline in the top soybean ratings, but traders were reportedly looking for a 3% reduction. Overnight losses in the Asian palm oil markets, as well as long liquidation ahead of Thursday’s USDA crop reports probably weighed upon prices as well. November soybeans fell 6.5 cents at 13.50/bushel in early Tuesday trading, while October soyoil lost 0.18 cents to 42.70 cents/pound, and October soymeal dipped $2.1 to $428.5/ton.
The wheat markets proved relatively firm in early Tuesday action. Weakness spilling over from the corn and soy markets probably exerted similar effects upon wheat futures overnight. However, Australia’s equivalent to the USDA (ABARE) published its latest estimate of Australia’s forthcoming wheat crop, cutting the forecast by almost 1.0 million tonnes. That very likely boosted wheat prices. December CBOT wheat edged 0.75 cent higher to $6.42/bushel around dawn Tuesday, while December KCBT wheat gained 1.0 cent to $6.895 and December MGE futures added 0.25 cent to $7.03.
Cattle futures remained surprisingly weak Monday night. Wholesale beef prices have declined unexpectedly since Labor Day. That weakness probably undercut cash prices last week and may be expected to do the same later this week, especially after prices declined substantially again Monday afternoon. October cattle futures slid 0.12 cents to 125.22 cents/pound as trading accelerated Tuesday morning, while December slipped 0.22 cents to 128.50. October feeder cattle tumbled 0.30 cents to 157.75 cents/pound, and January slumped 0.22 cents to 157.72.
Hog futures were mixed to lower in overnight action. Monday afternoon cash and wholesale reports confirmed strength anticipated earlier in the day. However, the gains, particularly in pork values, seemed smaller than was expected, which probably explains today’s early slippage. October hog futures rose 0.02 cents to 90.90 cents/pound early Tuesday morning, while December sagged 0.02 cent to 87.60.