Corn futures resumed their late rally Tuesday morning. Little fresh news concerning corn futures emerged Tuesday morning, which seemingly opened the door to continued gains in the wake of last Friday’s supportive USDA reports. Wire service reports again cited buying from end users as they try to take advantage of harvest lows. December corn futures rose 1.75 cents to $4.365/bushel in early Tuesday trading, while May added 1.75 cents to $4.5725.
Soyoil led beans higher as well Monday night. After staging a late-session rebound Monday, soybean and product futures gained moderately on bullish vegoil developments. Palm oil prices had recently rallied on excessive Southeast Asian rainfall, but traders now worry about damage done by the weekend Typhoon that hit the Philippines. Thus, soyoil led the way higher. January soybean futures gained 2.75 cents to $13.0375/bushel in pre-dawn Tuesday action, while December soyoil surged 0.44 cents to 40.86 cents/pound, and December soymeal edged $0.5 lower to $421.6/ton.
The wheat markets followed corn and beans higher. With the weekly Crop Progress report delayed by the Veterans Day holiday, wheat traders seemed to have little grist for their mills. As a result, they seemingly took their cue from concurrent increases in corn and soy futures. December CBOT wheat futures rallied 2.25 cents to $6.485/bushel early Tuesday morning, while December KCBT wheat futures moved up 2.25 cents to $7.085, and December MWE futures lifted 2.0 to $7.065.
Cattle traders seemed to reconsider Monday’s gains overnight. Last Friday’s last cash strength gave rise to expectations for further cattle market gains later this week, especially if wholesale demand improves seasonally. However, prices dipped last night, which may signal diminished industry confidence, especially in the absence of holiday news yesterday. December cattle futures slipped 0.05 cents to 132.70 cents/pound as Tuesday dawned over Chicago, while April futures skidded 0.02 to 135.25. Meanwhile, January feeder cattle bounced 0.32 cents to 164.50 cents/pound from Monday’s weak close, while March feeders crept up 0.27 cents to 164.60.
Rising supplies seem to be weighing upon hog futures. Although the cash hog and wholesale pork markets ended last week on a firm note, traders seem to be becoming increasingly worried about the potential for surging supplies during the days ahead. Rising weights certainly seem to be pointing in that direction. December hog futures slid 0.22 cents to 87.82 cents/pound Monday night, while April tumbled 0.30 to 93.75.
Cotton futures also rallied in early Tuesday trade. Little fresh cotton news became apparent Monday night, which apparently caused ICE traders to copy their crop market counterparts and buy cautiously. They were probably encouraged in doing so by the December futures’ push above its 10-day moving average, which might signal a bullish technical reversal. December cotton advanced 0.40 cents to 77.37 cents/pound around sunrise Tuesday, while March cotton ran up 0.32 cents to 78.52.