The agricultural markets moved generally higher Tuesday morning as the bounced back from the broad financial market breakdown suffered Monday. Corn futures posted a moderate rebound in concert with wheat and soybeans. Traders credited widespread bargain hunting and tight country markets for portions of the early strength. May corn surged 13.0 cents to $6.5975/bushel around noon Tuesday, while December gained 6.5 cents to $5.3875.
The soybean complex also staged a substantial comeback Tuesday morning. This was not terribly surprising since the legume market seemed very reluctant to join the Monday decline. Wire service reports also cited firm cash quotes and bargain hunting for the early rise. Oil World commentary suggesting South American export problems could shift Chinese buying back to the U.S. market, as well as their arguments that estimates of South American production are too high probably boosted soy values as well. May soybeans jumped 20.5 cents to $14.155/bushel around mid-session Tuesday, while May soyoil climbed 0.86 cents to 49.04 cents/pound, and May meal leapt $9.1 to $402.4/ton.
Supportive wheat market fundamentals seemed to come to the fore again Tuesday morning after the markets proved surprisingly vulnerable to the general breakdown suffered Monday. The winter wheat crop seems vulnerable to another bout of frost later this week, whereas continuing wet, cool conditions seem set to delay spring wheat plantings. Indeed, the Minneapolis market led the way higher. May CBOT wheat futures advanced 8.25 cents to $7.02/bushel just around lunchtime Tuesday, while May KCBT wheat rose 8.5 cents to $7.41, and May MGE futures rushed 11.0 cents upward to $8.09.
The big Monday breakdown reportedly convinced a few cowboys to take 2.0 cents less (around 125 cents/pound) for their cattle Monday, which very likely accounted for a portion of the afternoon losses. However, packing industry buyers apparently got few takers for similar bids Tuesday morning, which probably played a role in the CME rebound. Wholesale prices were mixed once again, which was not encouraging. June cattle rallied 0.60 cents to 120.42 cents/pound in late Tuesday morning action, while December added 0.20 cents to 125.65. May feeder cattle futures edged 0.10 cents higher to 139.90 cents/pound, but August slipped 0.10 cents to 146.27.
Hog futures joined the general commodity market rebound posted Tuesday morning. Cash market developments seemed supportive, since preliminary reports indicated a strong rise in direct market values west of the Mississippi River. Conversely, the midmorning pork report stated little change in pork cutout. Still, anticipation of seasonal strength could translate into considerable support for the swine market over the short run. The lightly traded May hog contract gained 0.35 cents to 86.62 cents/pound around midday Tuesday, while the June contract climbed 0.50 cents to 89.10.