Cattle futures the exception to the bullish rule Tuesday
Talk of demand strength seems to be supporting the crop markets. News that a large South Korean firm had bought 65,000 tonnes of U.S. corn Monday night seemingly reemphasized recent talk of burgeoning global demand at current price levels. Thus, corn rallied in concert with the other crop markets Tuesday morning. March corn rose 4.0 cents to $4.3975/bushel around midsession Tuesday, while May added 4.0 to $4.4575.
Cash firmness seemingly boosted the soy complex as well. Traders seemingly continue focusing upon the underlying strength of soybean meal demand, especially with the various country and port quotes proving quite firm again today. Indeed, the generally strength reversed early losses in soyoil as well. March soybeans had jumped 18.75 cents to $13.1175/bushel by late Tuesday morning, while March soyoil bounced 0.27 cents to 37.72 cents/pound, and March soymeal leapt $10.6 to $444.6/ton.
Increasing concerns about the winter wheat crop boosted those markets Tuesday. Wheat traders are reportedly becoming concerned about the hard red winter wheat crop due to recent lack of rainfall in the southern Plains, while others worry about freeze damage in the Midwest. General technical firmness and persistent demand strength are supporting the Minneapolis market as well. March CBOT wheat futures surged 12.75 cents to $5.765/bushel shortly before lunchtime Tuesday, while March KCBT wheat futures soared 17.25 cents to $6.4125, and March MWE futures vaulted 12.0 to $6.2275.
Hopes for a cash cattle bounce seem rather forlorn at this point. Beef values tumbled again Monday, which seemingly bodes ill for the short-term cattle outlook. Bulls appeared to be hoping for signs of renewed strength in early trading, but apparently threw in the towel as the day progressed. April cattle futures fell 0.32 cents to 139.07 cents/pound as the lunch hour loomed Tuesday, while August dipped 0.20 cents to 129.40. Meanwhile, March feeder cattle sank 0.22 cents to 167.77 cents/pound, and May tumbled 0.40 to 168.65.
Rebounding cash and wholesale markets sparked the morning hog rebound. A big Friday drop in pork values apparently triggered Monday’s CME hog sell-off. However, both the cash and wholesale markets posted modest comebacks yesterday, which explains much of the strength seen in early Tuesday action. April hogs rallied 0.32 cents to 93.17/pound late Tuesday morning, while June ran up 0.22 to 103.77.
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