Corn futures moved lower on improved crop condition ratings and expectations for higher yield estimates. Farmer selling also seemed to pick up. USDA reported national harvest progress at 39% still well below the ten year average at 54%. At this rate of harvest completion the market perceives more seasonal pressure ahead. December futures appear to be moving toward the low posted earlier this month at $4.32. December futures closed down 5.75 cents are $4.3825. May futures lost 6.0 cents to $4.5925.
Good crop prospects apparently kept the soy complex under wraps Tuesday. Although the market got good news in the form a sizeable purchase of U.S. soybeans from Taiwan overnight, the whole complex moved significantly lower in early morning action. The most likely culprits were the weekly USDA Crop Progress report, which stated the domestic soy harvest at 69% complete, and ongoing talk of strong yields. US dollar weakness seemingly sparked the late rebound toward unchanged levels. November soybean futures ended Tuesday 1.0 cent lower at $13.0225/bushel, while December soyoil slid 0.12 cents to 41.52 cents/pound, but December soymeal edged up $0.4 to $416.1/ton.
Dollar weakness seemed to boost wheat futures in Tuesday action. Good production news continued weighing upon wheat futures in early morning trading, but prices came back as the day progressed. The disappointing jobs data published early in the day sparked a sizeable drop in the value of the dollar, which in turn seemed to boost the commodity markets. Bullish ideas about export demand probably sparked additional buying. December CBOT wheat futures rose 1.0 cent to $7.075/bushel in late Tuesday trading, while December KCBT wheat futures surged 4.25 cents to $6.655 and December MWE futures climbed 4.5 cents to $7.5625.
Cattle futures rose strongly Tuesday. No cash trade has been reported so far this week. Futures strength is being supported by higher beef prices. Choice beef was higher Monday and then again at midday today; its flirting with 200.00 cents, the highest level since last summer. Futures are recovering from last week’s technical reversal lower. Last week’s high at 134.00 cents per pound offers key chart resistance. December cattle settled up 1.07 cents at 132.97, while April rose 0.72 to 135.50. November feeder cattle surge d 1.45 cents to 167.85 cents per pound and January feeders jumped 1.60 to 168.02.
Hogs followed cattle futures higher. Anticipation of seasonal weakness across the hog and pork complex is a major factor in the CME market at this point and seems likely to remain a big component in the pricing equation during the coming weeks. However, the market seemed to ignore midsession pork weakness recent cash slippage and continued reacting to cattle and beef strength, as well as the dollar weakness, in moving higher. December hog futures rallied 1.10 cents to 88.57 cents/pound Tuesday afternoon, while April advanced 0.75 cents to 90.55 cents/pound.
The Crop Progress data seemed rather negative for cotton futures. Monday’s USDA Crop Progress report stated the current crop condition at 44% good to excellent, which was two points above the comparable year-ago reading. Those figures were essentially unchanged from the September report, whereas traders may have been expecting a decline. The harvest was seen as being just 21% complete, well behind year-ago and five-year average readings. December cotton futures had fallen 0.61 cents to 82.45 cents/pound at Tuesday’s settlement, while March cotton lost 0.53 to 83.72.