The overnight financial market reversal boosted commodities. Corn futures rose modestly in early Tuesday trading, which at least partially marked a response to the concurrent equity index rebound and U.S. dollar weakness. The Monday afternoon Crop Progress stated corn conditions at expected levels, but the laggardly pace of the wheat harvest may have reminded traders of spring planting delays and the potential problems those could create this summer. July corn futures rose 4.75 cents to $6.58/bushel as the sun rose over Chicago Tuesday, while December bounced 4.25 cents to $5.5075.
The soy complex also rebounded early Tuesday morning. As with corn, soybean and product futures rallied in response to the Tuesday morning development of equity index strength and currency weakness. Talk of old crop tightness seemed less prevalent, since the new crop soybean contracts outperformed their nearby counterparts. Asian palm oil gains seemingly boosted soy oil as well. July soybean futures gained 4.5 cents to $15.165/bushel early Tuesday morning, while July soyoil climbed 0.21 cents to 47.76 cents/pound, and July soymeal rallied $3.4 to $454.4/ton.
The slow start to the winter wheat harvest apparently boosted wheat futures Tuesday morning. That is, the weekly USDA Crop Progress report stated the U.S. winter wheat harvest as being 20% complete, whereas the five-year average has reached 37% by this time. Rebounding equity index futures and concurrent U.S. dollar weakness probably sparked some buying as well. July CBOT wheat advanced 6.0 cents to $6.85/bushel in early Tuesday electronic trading, while July KCBT wheat added 2.5 cents to $7.1775, and July MGE futures edged up 0.75 cents to $8.12.
Cattle futures also rebounded from their Monday losses. The positive influence of rising equity index futures and the slipping dollar very likely played a significant role in the bounce, but traders may also be thinking cash prices are near their summer low. The fact that nearby futures pushed above major technical resistance associated with their 40-day moving averages may also be encouraging bulls. August cattle advanced 0.27 cents to 121.45 cents/pound just after dawn Tuesday, while December rallied 0.17 cents to 126.87. Meanwhile, August feeder futures lifted 0.32 cents to 148.00 cents/pound, but November slipped 0.05 to 152.80.
Hog futures sustained their Monday gains overnight. Spillover from the financial markets very likely supported the swine complex as well. Moreover, while the cash hog market is showing signs of having passed its June peak, pork cutout surged to a fresh 2013 high Monday afternoon. Persistent wholesale gains would certainly lend considerable support to the cash and futures markets. July hog futures were unchanged at 100.95 cents/pound in early Tuesday electronic activity, while the December contract moved up 0.12 cents to 83.00 cents/pound.
Cotton futures were boosted by several factors. Overnight gains in equity index futures and the sliding U.S. dollar probably encouraged buying, since the economic outlook is very important to apparel demand and that for cotton. And while the weekly Crop Progress report was generally favorable for cotton, the high percentage of poorly rated acreage in Texas seemed price supportive. July cotton surged 1.04 cents lower at 84.02 cents/pound early Tuesday morning, while December inched up 0.26 cents to 83.44.