Harvest pressure weighs on corn prices at midday
Harvest pressure continues weighing upon corn prices. Although soybean futures bounced this morning, the corn market proved unable to sustain concurrent gains. Today’s weakness probably stems from the weekly USDA Crop Progress report, since it stated the corn harvest as being 59% complete, whereas traders were looking for a result around 52%. December corn futures slipped 1.5 cents to $4.2925 Tuesday morning, while May futures dipped 1.5 cents to $4.505.
The soy complex rebounded modestly from Monday’s breakdown. The soy complex was likely oversold on a short-term basis after yesterday’s drop, which may have added power to today’s reaction to the Crop Progress report. It stated the U.S. soybean harvest as being 77% complete, which fell slightly below industry forecasts. That news, as well as spillover Asian palm oil strength, may have boosted prices. November soybean futures gained 2.5 cents to $12.7375/bushel around midsession Tuesday, while December soyoil climbed 0.32 cents to 40.68 cents/pound, but December soymeal skidded $2.2 to $412.5/ton.
The wheat markets sank along with corn this morning. Monday’s technical breakdown in wheat futures suggested further short-term losses could be forthcoming. However, the drop left Chicago and Minneapolis only slightly above their respective 40-day moving averages, which appear to be limiting losses today. December CBOT wheat futures sank 3.5 cents to $6.775/bushel just before midday Tuesday, while December KCBT wheat futures edged up 0.25 cent to $7.51, and December MWE futures rose 1.0 cent to $7.375.
Surging beef prices boosted cattle futures again today. Although a report that Taiwanese officials had found U.S. beef containing Zilmax at one of its restaurants seemed to weigh upon prices overnight, cattle futures rebounded as the morning passed. Talk that wholesale prices were continuing to rise probably sparked fresh optimism about the cattle market outlook. December cattle rallied 0.50 cents to 134.30 cents/pound late Tuesday morning, while April skidded 0.02 to 134.57. November feeder cattle advanced 0.12 cents to 167.20 cents/pound and January feeders surged 0.22 to 167.25.
A report from an industry analyst may have undercut hog futures Tuesday. A prominent swine industry analyst published a report arguing that the PEDV outbreak was not responsible for the recent shortfall in hog supplies and that November totals will prove much larger appeared to depress hog futures this morning. Wholesale losses probably weighed upon prices as well. December hog futures tumbled 0.30 cents to 91.65 cents/pound around lunchtime Tuesday, while April slid 0.57 cents to 95.82 cents/pound.