Corn futures rose modestly Monday night. Persistent old crop firmness may have supported the nearby contracts, but deferred futures seemingly had little reason to rally, especially in light of favorable weather forecasts. The rise may be largely technical in nature, since futures have lost considerable ground in moving to multi-month lows lately. September corn futures rose 3.5 cents to $4.9275/bushel early Tuesday morning, while December bounced 3.0 cents to $4.7625.
The soy complex also posted a strong showing in overnight action. Old crop tightness was apparently supporting the nearby soybean and meal contracts, but deferred futures also exhibited considerable strength. A sizeable rebound from significant palm oil lows probably boosted the soyoil market, thereby exaggerating the strength in beans and meal. August soybean futures rallied 3.5 cents to $13.71/bushel just after sunrise Tuesday, while August soyoil climbed 0.19 cents to 42.66 cents/pound. August soymeal surged $7.1 to $446.0/ton, and November beans edged up 1.5 cents to $12.215.
Good export news seemingly boosted wheat futures early Tuesday morning. Traders saw evidence of recent rumors of robust import demand from China last night when it was announced that the Asian giant had bought 1.5 million tonnes of Australian wheat over the past six weeks. Winter wheat futures may also have been boosted by talk that recent rains caused lots of wheat to sprout while still in the head, which could substantially reduce the anticipated harvest. September CBOT wheat advanced 4.5 cents to $6.56/bushel in early Tuesday trading, while September KCBT wheat added 3.0 cents to $6.9325 and September MGE futures inched 1.75 cents higher to $7.36.
Cattle traders were probably disappointed by Monday’s futures action. Chicago prices seemed set to move decisively higher after country markets posted their first gains since mid-June last week. However, a sustained advance may require leadership from the wholesale market, which the bulls did not get yesterday. August cattle dipped 0.17 cents to 121.92 cents/pound as the sun rose over Chicago Tuesday, while December skidded 0.05 cents to 128.67. August feeder futures declined 0.25 cents to 153.02 cents/pound and November sank 0.37 cents to 159.52.
Hog futures moved decidedly lower Tuesday morning. Given the firm nature of Monday afternoon wholesale quotes, as well as the discounts built into futures, the losses were surprising. Ultimately, sizeable losses suffered at direct markets west of the Mississippi River seemed to depress the Chicago market. August hog futures fell 0.70 cents at 97.20 cents/pound early Tuesday morning, while December dropped 0.67 cents to 80.87.
Cotton futures seemed to rally in concert with the Chicago markets Monday morning. As is so often the case, there was little market moving news. In fact, the results of the weekly Crop Progress report seemed somewhat bearish since it indicated moderate improvements in the current U.S. cotton crop. Traders probably continue hoping for strong Chinese buying during the months ahead. October cotton jumped 0.67 cents to 85.52 cents/pound in early New York trading Tuesday, while December crept up 0.20 cents to 84.91.