Corn futures sustained their overnight rise Tuesday morning. The persistent tightness of the old crop situation apparently supported the nearby contracts. Traders cited short-covering for strength in deferred futures. That firmness in the face of sliding soybeans, the equity index setback from early highs and a modest U.S. dollar rebound was rather impressive. September corn futures rose 2.5 cents to $4.9175/bushel around midsession Tuesday, while December bounced 2.0 cents to $4.7525.
The soy complex proved vulnerable to renewed selling by late Tuesday morning. Although the old crop meal situation still seems very tight, most soy contracts turned decidedly lower after the early-morning trading pause. The most likely spark to the decline came from the weather, since many Corn Belt fields are being blessed with substantial rainfall today. August soybean futures dipped 5.75 cents to $13.6175/bushel just after sunrise Tuesday, while August soyoil sagged 0.20 cents to 42.27 cents/pound. August soymeal slipped $0.3 to $438.6/ton, and November beans sank 5.0 cents to $12.15.
Good export news seemingly boosted wheat futures again Tuesday. News that China had recently bought 1.5 million tonnes of Australian wheat was followed by an announcement of larger Egyptian buying this morning. Winter wheat futures may also be gathering support from talk that recent rains caused lots of wheat to sprout while still in the head, which could substantially reduce the anticipated harvest. September CBOT wheat surged 4.0 cents to $6.555/bushel just before lunchtime Tuesday, while September KCBT wheat climbed 6.75 cents to $6.97 and September MGE futures added 6.5 cents to $7.4075.
Chicago cattle prices proved surprisingly weak again Tuesday morning. Traders disappointment with recent futures action, as well as the persistent wholesale weakness seen Monday probably discouraged bulls. Weakness spilling over from the hog pit may have exaggerated selling. The negative feeder cattle reaction to rising corn prices didn’t help. August cattle sank 0.52 cents to 121.57 cents/pound in late Tuesday morning trading, while December slid 0.42 cents to 128.30. August feeder futures declined 0.37 cents to 152.90 cents/pound and November tumbled 0.95 cents to 158.95.
Hog futures moved decidedly lower Tuesday morning. Given the firm nature of Monday afternoon wholesale quotes, as well as the discounts built into futures, the losses were surprising. Ultimately, sizeable losses suffered at direct markets in the western Corn Belt seemed to depress the Chicago market. Traders also cited fund selling. August hog futures fell 1.25 cents at 96.65 cents/pound around midday Tuesday, while December dove 1.25 cents to 80.30.