Corn futures sustained their Monday gains into Tuesday morning. Having the USDA cut its 2013/14 harvest forecast from prior estimates and below those stated by industry analysts rather clearly boosted prices. Furthermore, the weekly Crop Progress report stated current corn conditions as being largely unchanged. September corn rose 1.5 cents to $4.735/bushel in early Tuesday trading, while December gained 2.25 cents to $4.6625.
The soy complex continued its late advance. News of large Chinese purchases boosted prices early Monday, with the monthly Crop Production and WASDE reports adding to the bullish news. The weekly Crop Progress report was not especially bullish, but it did not relieve concerns about mediocre fall yields either. Further short-term gains seem rather likely at this point. September soybeans surged 10.75 cents to $12.6725/bushel early Tuesday morning, while November beans jumped 12.25 to $12.375. September soyoil leapt 0.47 cents to 42.85 cents/pound, while September soymeal rallied $4.0 to $406.7/ton.
The wheat markets followed corn and soybeans higher this morning. Golden grain prices built partially upon the supportive results of Monday’s monthly reports, but the Crop Progress data also seemed rather bullish. That is, the crop condition rating declined significantly and the first reading for the spring wheat harvest was well behind normal. September CBOT wheat climbed 3.5 cents to $6.385/bushel just after dawn Tuesday, while September KCBT wheat edged up 2.75 cents to $7.03, and September MGE futures added 3.25 cents to $7.40.
Cattle futures also built upon Monday gains. A significant rise in choice cutout probably encouraged buying, since that suggested another cash market advance later in the week. However, wire services reported that a packing industry representative had shown a video of lame cattle at a conference last week, thereby suggesting the Tyson ban of a widely used growth promotant will spread. That would imply reduced beef production down the road. October cattle bounded 0.80 cents higher to 128.20 cents/pound early Tuesday morning, while December advanced 0.65 cents to 130.12. September feeder cattle zoomed up 0.85 cents to 157.85 cents/pound, and November lifted 0.27 cents to 160.27.
Lean hog futures proved relatively weak in early Tuesday trading. Monday afternoon reports indicated slipping cash prices earlier in the day, while pork cutout values posted a substantial drop. Traders may also suspect yesterday’s CME rally was overdone. Thus, hog futures were flat to lower in early action. October hog futures rose 0.05 cents to 86.25 soon after sunrise Tuesday, while December slid 0.15 cents to 82.90.
Cotton futures were mixed in overnight action. Although the monthly Crop Production report stated the anticipated cotton harvest below expectations, the USDA’s minimal adjustment to the 2013/14 carryout limited Monday gains. Moreover, the modest reaction to the lower crop condition reading on the weekly report suggests some uncertainty among cotton industry bulls. October cotton futures crept 0.01 cent higher to 90.07 cents/pound in early Tuesday action, while December edged 0.03 cents lower to 90.05.