Corn futures fell on unexpected overnight showers in central of Iowa on Tuesday morning. Cooler weather with moderate high-temperature around 80s F this week create favorable weather conditions for corn pollinating. USDA weekly condition rating good to excellent was unchanged at 63% from last week versus the drought-driven 26% rating posted last year. The prospect of increased production rather clearly depressed the corn market. However, the tight old crop situation probably limited declines. September corn futures are 18.25 cents lower to $5.225/bushel and the December contract fell 14.25 cents to $4.84.
Soybean futures prices followed corn lower in response to the beneficial weather forecasts. Large drops in soybean basis bids also exacerbated the bearish situation. In the news, oil world said that low Argentine soybean exports this season are likely to cause stronger export demand for U.S. new soybean crop. Decreasing palm oil prices due to sluggish export demand concerns also encouraged selling. August soybean futures descended 34.25 cents to $14.86/bushel. August soyoil moved 0.41 cents lower to 45.00 cents/pound, and August soybean meal fell $7.4 to $495.0/ton. November soybean prices dropped 8.75 cents to $12.7975 /bushel.
Wheat futures followed corn and soybeans lower Tuesday. The golden grain markets did not seem to suffer much from the bearish implication of find Midwest weather forecasts, since the Minneapolis spring wheat contracts declined only marginally. The prospect of huge domestic corn and bean supplies may have been the factor weighing heavily upon the winter wheat contracts. September CBOT wheat fell 7.5 cents to $6.5225/bushel around midsession Tuesday, while September KCBT wheat sagged 4.25 cents to $6.9775 and September MGE futures slid 1.75 cents to $7.45.
Cattle futures rallied moderately Tuesday morning. There was no obvious reason for the rise, although wire service reports cited widespread short-covering for a portion of those gains. Optimism spilling over from the hog and feeder cattle pits probably encouraged buying, especially among those looking for a seasonal rebound from annual cash market lows in the near future. August cattle climbed 0.37 cents to 122.25 cents/pound around lunchtime Tuesday, while December added 0.40 cents to 128.75. August feeder futures surged 1.02 cents to 153.95 cents/pound in reaction to the CBOT weakness, while November advanced 0.60 cents to 159.37.
The Cold Storage report encouraged hog market bulls. Not only did the monthly USDA Cold Storage report suggest spring pork demand was surprisingly strong, the Monday afternoon cash and wholesale reports were quite supportive of CME lean hog futures. August led the deferred contracts higher overnight. August hog futures rallied 1.22 cents to 98.35 cents/pound in early Tuesday trading, while December climbed 0.25 cents to 82.55.