Old crop conditions and weather forecasts continue affecting corn futures Tuesday. The cash markets reportedly sustained their recent rally in response to supply tightness, which supported old crop futures. Meanwhile, worries that hot, dry conditions will prevail when the 2013 crop is pollinating boosted new crop values. September corn futures soared 18.5 cents to $5.5175/bushel at its Tuesday settlement, while December spiked 21.25 cents to $5.2175.
Soybeans and meal surged in concert with corn Tuesday. The old crop situation remains extremely tight, thereby sending the expiring July contracts to highs not seen since last summer. As in the corn pit, concerns about the potential negative impact summer weather might have upon late-2013 production boosted deferred futures. Soybean oil continued suffering from its position on the wrong side of the crush spread, but closed slightly higher on the day. August soybean futures jumped 12.75 cents to $14.6825/bushel late Tuesday afternoon and August soymeal advanced $6.8 to $448.9/ton, while August soybean oil edged 0.06 cents higher to 47.02 cents/pound.
The wheat markets rallied strongly in Tuesday trading. Hopes for continued export demand from China apparently provided a great deal of support for prices, with old crop corn and bean tightness also seeming to boost the nearby spring wheat contracts. The price strength is quite impressive, since it is occurring with the winter wheat harvest in full swing. September CBOT wheat leapt 14.5 cents to $6.775/bushel at the daily close, while September KCBT wheat zoomed up 14.0 cents to $7.0375, and September MGE futures climbed 7.75 cents to $7.6875.
Cattle futures proved surprisingly firm Tuesday. Prices came under early pressure, which apparently reflected sizeable wholesale losses posted late Monday afternoon. However, bulls hope that summer cash market lows are on the board, which seemingly encouraging buying. Feeder futures turned downward as the grain and soy markets advanced. August cattle closed up 0.65 cents at 122.72 cents/pound Tuesday afternoon, while December gained 0.22 cents to 128.67. August feeder futures dropped 0.45 cents to 151.15 cents/pound, while November fell 0.60 cents to 156.17.
Hog futures proved quite mixed at the Tuesday close. Worries about the summer outlook apparently prompted the big drop suffered Monday, but the afternoon wholesale report proved very supportive. Moreover, the second-half contracts are now trading at substantial discounts to the cash equivalent price. Ultimately, the midsession drop in wholesale prices apparently undercut most CME prices once again. August hog futures skidded 0.37 cents to 95.17 cents/pound late Tuesday afternoon, while the December contract crept up 0.15 cents to 81.10.