Corn futures were mixed Tuesday morning in the wake of the weekly Crop Progress report from the USDA Monday afternoon. Having corn planting progress at 95% essentially matched expectations, while the crop condition rating was moderately below the norm. Overnight equity index and U.S. dollar weakness may also have confused traders. July corn futures rose 0.25 cents to $6.5025/bushel in early trading, while December was slid 0.75 at $5.4525.
As expected, the weekly USDA Crop Condition report stated U.S. soybean plantings well behind historical averages, with Iowa and Wisconsin plantings running about 35 percentage points behind the norm highlighting the general lag. That news, as well as the apparent overnight resumption of the U.S. dollar decline probably powered the moderate gains posted by soybean futures overnight. July soybean futures rallied 4.0 cents to $15.1575/bushel early Tuesday morning, while July soyoil gained 0.11 cents to 48.18 cents/pound, and July soybean meal added $2.5 to $450.8/ton.
Wheat futures were generally lower in early Tuesday trading. The results of the weekly Crop Progress report did not seem terribly surprising, as signified by the very modest price shifts posted overnight. Spring wheat plantings probably exceeded expectations, but the poor reading on the condition of the crop may have offset that result. July CBOT wheat futures slipped 2.5 cents to $6.8725/bushel overnight, while July KCBT wheat edged 0.5 cents lower to $7.255, while July MGE futures inched up 0.25 cents to $8.1175.
CME live cattle futures declined in response to cash market weakness seen late last Friday, thereby continuing the generally bearish seasonal trend. However, the Monday afternoon beef report indicated choice cutout had posted a surprising bounce to start this week. That apparently inspired the futures gains experienced overnight. June cattle advanced 0.07 cents to 119.27 cents/pound as the sun rose over Chicago Tuesday morning, while December rose 0.02 to 124.45. August feeder cattle futures increased 0.27 cents to 143.70 cents/pound, whereas November skidded 0.02 cents to 149.27.
Seasonal strength provided fresh upward impetus to CME hog futures Monday and was later supplemented by rumors that Chinese buyers are shopping for U.S. pork. The market built upon those early-week gains in overnight trading as a result of the Monday afternoon wholesale report, which stated pork cutout almost two cents higher. June hog futures surged 0.52 cents to 99.72 cents/pound in early Tuesday action, while December bounced 0.15 cents to 80.90.
Tightness in the old crop situation seemingly encouraged cotton market bulls to build upon Monday gains in overnight trading. One might also argue that U.S. dollar losses suffered Monday night offset equity weakness. Traders of the new crop contracts seemingly found the data on the weekly Crop Progress report rather bearish. July cotton futures climbed 0.16 cents to 86.81 cents/pound early Tuesday morning, while December dipped 0.40 to 85.48.