The USDA Crop Progress report depressed corn futures Monday night. The corn market continues feeling harvest pressure at this point, but the selling was probably intensified by the weekly USDA Crop Progress report, since it stated the corn harvest as being 59% complete, whereas traders were looking for a result around 52%. December corn futures slipped 1.75 cents to $4.29 early Tuesday morning, while May futures dipped 1.75 cents to $4.5025.
The soy complex posted a mixed showing in early Tuesday trading. The weekly Crop Progress report stated the U.S. soybean harvest as being 77% complete, which fell slightly below industry forecasts. That news may have lent support despite a report that China’s October soybean imports will fall well short of expectations. Beans got some support from the oil market, which reacted well to an overnight surge in Asian palm oil prices. November soybean futures sagged 0.75 cent to $12.705/bushel in pre-dawn Tuesday action, while December soyoil climbed 0.16 cents to 40.52 cents/pound, and December soymeal skidded $2.3 to $412.4/ton.
The wheat markets were also mixed this morning. Monday’s technical breakdown in wheat futures suggested further short-term losses could be forthcoming. However, talk of Russian market strength, as well as the surprisingly large weekly drop in U.S. winter wheat conditions seemed to boost futures values somewhat. December CBOT wheat futures inched 0.5 cent lower to $6.805/bushel just before dawn Tuesday, while December KCBT wheat futures edged 0.5 cent higher to $7.5125, and December MWE futures gained 1.5 cents to $7.38.
Taiwan news may have depressed cattle futures Monday night. Surging beef prices boosted cattle futures Monday, with traders thinking the wholesale strength could boost cash cattle values again later in the week. However, prices dipped in overnight action, which may have reflected a report that Taiwan had found U.S. beef containing Zilmax at one of its restaurants Tuesday. Any news that threatens a slowdown in U.S. beef exports can hardly be seen as supportive for prices. December cattle declined 0.07 cents to 133.72 cents/pound early Tuesday morning, while April lost 0.25 to 134.35. November feeder cattle fell 0.40 cents to 166.67 cents/pound and January feeders slumped 0.20 to 166.72.
Hog futures slipped from Monday’s late highs. News of cash and wholesale strength sent hog and pork prices higher yesterday, with ideas that the porcine epidemic diarrhea virus (PEDV) outbreak is not under good control boosting deferred futures. Talk that PEDV did not play a role in the recent slaughter shortfall may have weighed upon prices somewhat last night. December hog futures crept up 0.07 cents to 92.02 cents/pound in early Tuesday action, while April slid 0.20 cents to 96.20 cents/pound.
Cotton futures rose modestly in Monday night trading. The weekly USDA Crop Progress indicated the U.S. is going rather well, with several states posting gains of 15%-20% last week. Bulls may have focused upon the sizeable rise in poor to very poor ratings, but the overnight bounce may simply have reflected technical buying. That is, Monday’s decline seemingly left nearby futures near a major technical target, so a bounce may be forthcoming. December cotton futures bounced 0.15 cents to 78.80 cents/pound around sunrise Tuesday, while March cotton added 0.13 cents to 80.58.