Corn futures were mostly lower Tuesday. The tight old crop situation seemingly reemerged as a supportive factor for nearby September futures. However, favorable weather forecasts and improved ratings on the weekly USDA Crop Progress report Monday afternoon continued weighing upon the deferred contracts. September corn rose 3.0 cents to $4.7225/bushel at the Tuesday settlement, while December dipped 1.25 cents to $4.5925.
The soy complex suffered a general decline in Tuesday trading. Although nearby soymeal prices seemed to garner early support from tightness in old crop supplies, across-the-board losses were the rule later in the day. As with corn, the improved crop ratings posted on the Monday afternoon Crop Progress report seemed to drag new crop prices downward. September soybean futures fell 14.0 cents to $11.935/bushel as CBOT trading ended Tuesday, while November beans dropped 16.0 cents to $11.6725. September soyoil tumbled 0.61 cents to 42.11 cents/pound, while September soymeal sank $5.5 to $371.6/ton.
Wheat again performed well despite current bearish conditions. Ongoing corn and soy losses probably weighed upon wheat prices as well, especially since the Crop Progress report also implied favorable conditions for spring wheat production. The looming end to the winter wheat harvest, as well as widespread reports of buying around the globe, appear to be supporting the market. Traders also cited bargain hunting and short-covering for a portion of today’s bounce. September CBOT wheat advanced 5.25 cents to $6.505/bushel by late Tuesday afternoon, while September KCBT wheat climbed 6.5 cents to $7.02, and September MGE futures improved 5.75 cents to $7.395.
The cattle complex seemed to benefit from spillover hog strength. While substantial deliveries against August futures and slipping choice cutout appeared negative for cattle futures, particularly since Chicago prices are quoted well above recent spot values, cattle and feeder futures rose moderately on the day. Strong hog and pork gains appear to be spilling over into the cattle and feeder pits. October cattle settled up 0.12 cents to 124.67 cents/pound Tuesday afternoon, while December added 0.27 to 127.30. September feeder cattle futures surged 0.65 cents to 157.65 cents/pound, and November lifted 0.67 to 160.67.
Lean hog futures continued their rally in Tuesday trading. The wholesale and cash markets resumed their late gains before noon, which quickly spilled over into the Chicago market. The bullish implications of Monday’s big surge probably encouraged buying as well. October hog futures jumped 0.95 cents to 86.45 at Tuesday’s close, while December bounded 0.65 cents to 82.85.