After rebounding from large weekend losses Monday night, corn futures could sustain only a portion of those gains Tuesday. There seemed to be no particular news behind the morning setback, but it may represent a reaction to several items indicating that importers are looking to South America rather than the U.S. for their corn. Prospects of slow plantings seemed to support deferred futures. May corn had fallen 1.75 cents to $6.405/bushel late Tuesday afternoon, while December rose 0.5 cent to $5.37.
Old crop soybean futures rose slightly while the deferreds dipped Tuesday. Traders apparently bought the nearby contracts on ideas they were oversold technically. Meanwhile, talk that the worst of 2013 Brazilian export problems are behind them may have weighed upon North American prices. The potential for acreage shifts away from corn to soybeans due to a wet, cold spring seemed to depress deferred futures as well. May soybeans edged upward 3.25 cents to $13.94/bushel at their Tuesday settlement, while May soyoil fell 0.50 cents to 49.59 cents/pound, whereas May meal gained $3.6 to $402.1/ton.
Wheat futures proved better able to hold onto their Monday night gains Tuesday morning than did corn and beans. Bulls reportedly argued that poor winter wheat condition ratings on the first national crop condition report of the 2013 season are supporting the market. We suspect recent news of moderate sales to South Korean interests is also supporting wheat markets. May CBOT wheat futures rose 6.75 cents to $6.7075/bushel in late Tuesday morning trading, while May KCBT wheat advanced 7.75 cent to $7.1675, and May MGE futures surged 9.5 cents to $7.7625.
Reports that this feedlot showlists, representing the number of animals they have for sale, came in at surprisingly high levels Monday. The underlying implication of liquid supplies seemingly undercut cattle futures rather badly Tuesday. Still, sustained wholesale strength cold overcome the indicated pessimism during the days and weeks just ahead. April cattle sank 1.32 cents to 127.42 cents/pound at its close Tuesday, while August skidded 1.20 cents to 123.60. May feeder cattle futures also declined; losing 0.57 cents to 147.10 cents/pound, and August dropped 0.72 cents to 153.65.
The hog market remained generally strong Tuesday, although the summer contracts rather clearly outperformed their spring counterparts. Traders may have been concerned about the premium built into the nearby April future with just over a week left to trade, whereas optimism about the spring-summer outlook very likely supported the summer contracts. April hogs settled 0.35 cents lower, at80.95 cents/pound, in late Tuesday trading, while June climbed 0.27 cents to 91.85.