Corn, beans bucked Tuesday's bearish ag market trend

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Export news boosted corn Tuesday. News of a sizeable South Korean purchase of U.S. corn was seconded by a story about strong Chinese demand and seemingly offset concerns about China’s recent rejections of several shipments. That apparently set the stage for a positive reaction to early news of a sizeable export sale. March corn futures rallied 3.5 cents to $4.265/bushel late Tuesday afternoon, while May added 3.5 cents to 4.3525.

Meal reportedly led the soy complex higher in Tuesday action. Bullish traders apparently bought soybean meal futures rather aggressively today, with wire service sources citing widespread bargain hunting. News that Egypt had bought 25,000 tonnes of soyoil from Cargill overnight was seemingly offset by Asian palm weakness. Talk of growing South American heat may also have boosted prices. January soybeans surged 8.75 cents to $13.465/bushel at their Tuesday settlement, while January soyoil dropped 0.44 cents to 39.31 cents/pound, and January soymeal climbed $9.0 to $448.0/ton.

Wheat futures reversed early gains. News that Egypt had bought large quantities of Black Sea wheat this morning seemed to offer support for the wheat markets, as did concurrent gains in the corn and bean pits. However, bulls couldn’t sustain the modest gains, with traders citing large global supplies in pushing prices to fresh lows. March CBOT wheat futures closed 2.0 cents lower at $6.1975/bushel Tuesday afternoon, while March KCBT wheat futures fell 5.0 cents to $6.605, and March MWE futures stumbled 4.25 cents to $6.50.

Cattle futures set back from chart resistance Tuesday. A big rise in beef cutout values boosted cattle prices Monday, but CME prices reversed to the downside today, possibly due to ideas that the beef price rise will prove temporary. Nearby futures also failed to overcome important technical resistance yesterday, thereby setting the stage for today’s decline. February cattle futures slumped 0.52 cents to 132.97 cents/pound at their Tuesday close, and April futures stumbled 0.30 cents to 134.05. Meanwhile, January feeder cattle futures plunged 1.25 to 167.15 cents/pound and March tumbled 1.00 cent to 166.37.

Resurgent pork prices provided only temporary support for hog futures. Ideas that current hog supplies are adequate weighed upon the swine market again Tuesday. Stunningly large Monday pork gains boosted hog prices overnight, but bulls couldn’t sustain the advance. That seemingly opened the door to fresh technical selling. February hog futures dove 0.97 cents to 85.65 cents/pound in late Tuesday trading, and June edged down 0.10 to 98.90.

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