Corn is benefiting from soybean strength Tuesday morning. Soybeans rallied to start this week’s trading, with traders citing deteriorating South American growing conditions and lower private forecasts for the Brazilian crop. Those concerns probably apply to corn as well. Robust demand for U.S. corn is apparently providing persistent support, but traders remain very aware of the size of current stocks. March corn lifted 2.5 cents to $4.4775/bushel late Tuesday morning, while May rose 2.5 to $4.5325.
Talk of declining South American production boosted soybeans. After proving quite good early in the current growing season, Brazilian conditions have reportedly deteriorated lately. Argentine conditions have generally been poorer than those in Brazil. Given the tightness of the U.S. situation, those developments sent CBOT prices sharply higher in early trading. However, the late-morning NOPA crush data seemed bearish. March soybeans had leapt 22.25 cents to $13.5975/bushel just before lunchtime Tuesday, while March soyoil soared 0.94 cents to 40.09 cents/pound, and March soymeal climbed $7.9 to $457.9/ton.
Production and transport concerns are still boosting wheat prices. Wheat futures are very likely rising in concert with surging soy prices today. But traders also cite the potential for weather damage to U.S. winter wheat and Canada’s transport problems as supporting spring wheat values. March CBOT wheat futures jumped 10.25 cents at $6.0875/bushel around midday Tuesday, while March KCBT wheat futures advanced 11.0 cents to $6.855, and March MWE futures rallied 12.5 to $6.79.
Monday’s big beef gains sent cattle futures higher this morning. Cattle futures set back sharply last Friday, since traders seemed to be disappointed with late-week cash action. However, the Chicago market reversed sharply to the upside Tuesday morning, because wholesale prices soared on Monday. This may bode well for short-term cattle price prospects across the country and in Chicago. April cattle futures surged 0.85 cents to 141.95 cents/pound as Tuesday’s lunch hour loomed, while August climbed 0.67 cents to 131.82. Meanwhile, March feeder cattle ran up 0.57 cents to 171.05 cents/pound, and May spiked 1.27 to 173.05.
Talk of tightening supplies is boosting the hog market. Recent cash and wholesale news has been supportive of the hog and pork complex, but that hardly explains the bullish breakout posted lately. That very likely represents a trader reaction to the growing fears that the PEDV outbreak is sharply reducing market hog supplies. April hogs soared zoomed up 1.10 cents to 97.27 cents/pound late Tuesday morning, while June surged 1.12 to 107.25.
Cotton futures set back late Tuesday morning. Cotton futures continued their late pattern of mixed trading this morning, possibly due to conflicting Chinese news issued over the weekend. Bulls were encouraged by the strength exhibited by the other crop markets, as well as morning weakness in the U.S. dollar, but the resulting midmorning gains were reversed just after lunch. March cotton slipped 0.05 cents to 87.50 cents/pound just after noon (EST) Tuesday, while July cotton slid 0.20 to 88.38.