Bearish crop forecasts seem to be depressing corn futures. Corn prices slipped Tuesday morning despite early news of substantial sales to South Korea and an ‘unknown’ destination. It seems rather apparent that bearish expectations concerning the likely results of Friday’s USDA reports are weighing upon the market. December corn futures slipped 1.25 cents to $4.25/bushel in early Tuesday trading, while May lost 1.75 to $4.43.
Bearish expectations appear to be weighing upon the soy complex as well. There was little fresh news concerning the soy markets this morning, although it would be rather easy to assume price support from talk that Brazil’s large crop is encouraging their government to boost the soy diesel requirement for domestic fuel. Again, it seems as if traders are expecting bearish data Friday. January soybean futures fell 7.25 cents to $12.4925/bushel Tuesday morning, while December soyoil dipped 0.13 cents to 41.12 cents/pound, and December soymeal skidded $3.5 to $393.4/ton.
The Crop Progress report seemingly proved a belated wheat market reaction. Monday’s weekly Crop Progress report indicated that U.S. winter wheat conditions have improved and that the crop is on or ahead of schedule. Talk of diminished export demand may also be weighing upon prices. December CBOT wheat futures dropped 6.0 cents to $6.5675/bushel around midsession Tuesday, while December KCBT wheat futures tumbled 5.5 cent to $7.2375, and December MWE futures declined 5.5 to $7.1375.Cattle futures edged upward this morning.
Cattle futures edged upward this morning. Feedlot showlists published Monday afternoon were larger than the week prior, which may bode rather ill for the results of this week’s cash trading. However, talk of continued wholesale strength may be offsetting that pessimism. December cattle rose 0.17 cents to 132.27 cents/pound just before lunchtime Tuesday, while April gained 0.37 to 134.27. January feeder cattle surged 1.15 cents to 164.75 cents/pound, while March feeders jumped 1.32 to 165.17.
Hog futures rose despite early wholesale weakness. Talk of flat-to-weak cash hog action may have indicated a bit more firmness than CME traders were expecting Monday afternoon, but large wholesale losses reported at midsession clearly weren’t encouraging. Ultimately, early CME hog stability probably reflected strength spilling over from the cattle market. December hog futures moved up 0.15 cents to 88.47 cents/pound in early Tuesday trading, while April rallied 0.25 to 93.70 cents/pound.