Cash weakness a common theme of the ag markets today

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The corn market continued sliding Tuesday morning. Monday’s quarterly USDA Grain Stocks report stated U.S. corn inventories above forecast levels, thereby suggesting they’re ample to current needs. Given widespread expectations for a record 2013 harvest, and ongoing cash market losses, it wasn’t terribly surprising to see prices continue declining this morning. December corn dipped 4.25 cents to $4.3725/bushel in Tuesday morning action, and May lost 4.0 cents to $4.5825.

Cash weakness reportedly increased the selling pressure in the soy complex. The Grain Stocks report also held bearish implications for the soybean outlook, since the stated inventory topped most predictions. As with corn, talk of accelerating declines at various Corn Belt markets also extended the bearish post-report reaction this morning. November soybeans fell 14.0 cents to $12.6875/bushel around midsession Tuesday, while December soyoil slumped 0.27 cents to 40.83 cents/pound, and December soymeal declined $5.0 to $400.4/ton.

The wheat markets again held up relatively well Tuesday morning. Monday’s reports held mixed implications for the wheat outlook, which largely explains their relatively firm post-report performance. One has to suspect traders are reacting to the completion of the spring wheat harvest at this juncture; they appear to be inspired by positive technical developments and spreading wheat versus corn and/or beans in response to their divergent harvest situations. December CBOT wheat inched up 1.5 cents to $6.80 bushel in early Tuesday action, while December KCBT wheat added 4.25 cents to $7.4375, and December MGE futures advanced 8.0 cents to $7.3625.

Cattle futures continued their decline Tuesday morning. Despite significant signs of strength at the cash and wholesale markets lately, cattle futures suffered from persistent selling in early Tuesday action. One has to wonder if the livestock markets are suffering from the federal government shutdown, since most pertinent information comes from the USDA. December cattle futures sank 0.22 cents to 131.75 cents/pound by late Tuesday morning, while April skidded 0.22 cents to 134.35. Meanwhile, November feeder cattle rallied 0.12 cents to 165.32 cents/pound, and January ran up 0.22 to 164.22.

Cash losses may be depressing hog futures at this point. As with cattle, the lack of news from the USDA may be undercutting the hog and pork complex. However, country reports suggest cash hog values are continuing the late slide, thereby giving rise to ideas that the market is very much involved in its usual autumn breakdown at this point. December hog futures tumbled 0.62 cents to 86.00 cents/pound just before lunchtime Tuesday, while April dropped 0.55 cents to 88.70.

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