Wheat bucked the bearish ag market trend Tuesday

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Corn futures followed soybeans lower Tuesday. The weekly USDA Crop Progress report indicated a 2% drop in good-to-excellent ratings for U.S. corn, which probably exceeded expectations. However, given the gains posted Monday and the surprisingly good soy result, corn futures declined in concert with the soy complex. September corn closed 2.5 cents lower at $3.5625/bushel Tuesday, while December lost 2.0 cents to $3.6725.

Soybeans proved generally weak Tuesday. CBOT traders expected the Crop Progress report to indicate a 1% drop in the good-to-excellent categories on yesterday’s report, but it stated that result as being unchanged at 71%. That 10-year high for late July weighed on the soy complex as traders expect a huge fall crop. September soybean futures fell 13.75 cents to $10.815/bushel Tuesday afternoon, while November futures dropped 13.75 cents to $10.6575. September soyoil tumbled 0.55 cents to 35.57 cents/pound and September soymeal slumped $5.1 to $355.7/ton.

The wheat markets bounced from technical support. Wheat futures declined in tandem with corn Monday night and Tuesday morning, but posted a surprising rebound later in the day. A general lack of news suggests technical and pragmatic reasons for the bounce. Nearby futures bounced from moving average support, with heavily committed fund shorts likely taking profits. September CBOT wheat rebounded 8.5 cents to $5.525/bushel as Tuesday’s pit session ended, while September KC wheat climbed 4.25 cents to $6.4275/bushel, and September MWE wheat ran up 5.75 to $6.2925.

Cattle futures set back from early Tuesday highs. Cattle futures rallied last night despite Monday’s surprising weakness and flat-to-mixed wholesale quotes. However, bulls could sustain only a portion of the advance, probably due to seasonal pessimism. October live cattle slumped 0.57 cents to 155.65 cents/pound in late Tuesday action, while December sagged 0.43 cents to 155.90. Meanwhile, September feeder futures edged up 0.05 cents to 220.72 cents/pound, and November feeders dipped 0.37 cents to 218.15.

Hog futures resumed their recent breakdown Tuesday. Although wholesale prices firmed Monday, traders apparently expect a resumption of the general downward move in cash hog and pork values. Cash quotes were scarce at midday, but pork weakness seemingly confirmed bearish ideas. October hog futures plunged 1.95 cents to 101.67 cents/pound at their Tuesday close, while December dove 1.37 cents to 93.97.

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