Did equity losses trigger Tuesday's commodity losses?

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Corn futures couldn’t sustain early-Tuesday gains. The weekly Crop Progress report indicated good farmer progress in getting the corn crop in the ground. That result fell slightly below forecasts, which opened the door to early support spilling over from the wheat and bean markets. However, bulls couldn’t sustain the move as the day passed. July corn slumped 3.75 cents to $4.735/bushel in late Tuesday trading, while December lost 3.75 cents to $4.72.

The soy complex suffered a big breakdown late in the day. Soy futures gathered early support from the Crop Progress report and from talk of persistent old-crop demand. However, bulls proved unable to sustain the gains, with wire service reports citing profit-taking for the late reversal. July soybeans dove 15.5 cents to $14.6975/bushel at their Tuesday close, while July soyoil fell 0.35 cents to 40.07 cents/pound, and July soymeal tumbled $3.8 to $486.7/ton.

The wheat markets also turned lower Tuesday. The Crop Progress report seemed quite bullish for wheat futures, since winter wheat crop conditions declined and spring wheat plantings fell short of forecasts. However, the market turned moderately lower later in the day, with wire service reports pointing to the bearish global outlook. July CBOT wheat futures dropped 4.0 cents to $6.705/bushel as Tuesday trading ended, while July KCBT wheat futures skidded 0.5 cent to $7.6825, and July MWE futures slid 0.5 cent to $7.3825.

Cattle futures slid despite big wholesale gains Tuesday. Cattle futures rallied strongly Monday, thereby seeming to reflect fresh optimism about the late-spring outlook. However, prices gave back a significant portion of those gains Tuesday despite a big midday jump in beef values. June cattle settled 0.65 cents lower at 138.75 cents/pound Tuesday, while December dropped 0.60 to 145.85. Meanwhile, August feeder cattle reversed 0.27 lower to 195.92 cents/pound, and October dipped 0.27 cents to 197.10.

Hog futures turned mixed Tuesday. The hog market apparently benefited from strength spilling over from the cattle pit Monday, which in turn probably encouraged technical buying. Modest cash and wholesale strength has also been supportive. However, continued losses in the CME lean hog index, which CME futures cash-settle against, seemed to drag the nearby contracts downward this morning. Deferred futures were relatively firm. June hog futures sank 0.77 cents to 118.60 cents/pound as trading wound down Tuesday, whereas December climbed 0.45 cents to 94.80.

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