Bearish crop forecasts seemed to depress corn futures Tuesday. Corn prices slipped this 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 weighed upon the market. December corn futures slipped 1.25 cents to $4.25/bushel in Tuesday trading, while May lost 1.5 cents to $4.4325.
Bearish expectations appear to weigh upon the soy complex as well. There was little fresh news concerning the soy markets Tuesday, 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 looks as if traders are expecting bearish data Friday. January soybean futures fell 6.25 cents to $12.5025/bushel Tuesday, while December soyoil dipped 0.10 cents to 41.15 cents/pound, and December soymeal slid $4.1 to $392.8/ton.
The Crop Progress report seemingly provoked a belated wheat market sell-off. 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 have weighed upon prices. December CBOT wheat futures dropped 6.75 cents to $6.56/bushel at Tuesday’s settlement, while December KCBT wheat futures tumbled 7.0 cents to $7.2225, and December MWE futures declined 5.5 to $7.1375.
Cattle futures posted a mixed close Tuesday. 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. Traders apparently remain optimistic about the 2014 outlook, but a decline in choice cutout on the midday report sank the December future. December cattle closed 0.05 cents lower at 132.05 cents/pound Tuesday afternoon, while April gained 0.25 to 134.15. January feeder cattle surged 1.17 cents to 164.77 cents/pound, while March feeders jumped 1.22 to 165.07.
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, today’s hog action probably reflected fluctuations in the cattle market, as well as bullish expectations based upon low supplies. December hog futures settled down 0.07 cents at 88.25 cents/pound in late Tuesday trading, while April rallied 0.20 to 93.65 cents/pound.