Corn is continuing its late-year decline. Monday’s export seemed supportive of corn futures, but CBOT prices declined. They have continued sliding today, despite morning news of a sizeable sale to Mexico. The markets are certainly well supplied, and South American production will probably be quite large, but simple long liquidation before the end of the year may be the real reason for the slippage. March corn futures slid 3.75 cents to $4.09/bushel around midsession Tuesday, while July lost 3.75 to $4.2425.
Beans and meal posted a surprising Tuesday morning bounce. The soy complex traded mixed to lower overnight, with pre-holiday trading likely limiting market action. Nevertheless, soybean and meal futures turned higher as the morning passed. That probably reflected stable cash market quotes and a growing perception of country tightness as farmers await higher prices. The prospect of huge 2015 South American production seems likely to limit gains. January soybean futures rallied 1.0 cents to $10.4275/bushel late Tuesday morning, while January soyoil sank 0.15 to 32.64 cents/pound, and January meal skidded $3.0 to $374.4/ton.
The wheat markets remained under pressure. After posting an impressive rebound Monday, wheat futures are suffering from fresh downward pressure. There’s little geopolitical or trade news at this point, so traders are apparently reacting to weather forecasts. That is, some industry participants worried about potential freeze damage from arctic temperatures over the central U.S. and Black Sea region in the days ahead, but it now looks as if snow cover will protect winter wheat. March CBOT wheat fell 8.5 cents to $6.07/bushel in late Tuesday morning trading, while March KC wheat slumped 6.0 to $6.415/bushel and March MWE wheat sagged 5.25 to $6.32.
Cattle futures failed at moving average resistance. Significant Monday beef gains sparked a strong opening in live cattle futures this morning. However, bulls couldn’t sustain the push above the nearby contracts’ 40-day moving averages, which in turn seemed to spur a wave of profit taking before the end of the year. Feeders sustained modest gains. February live cattle slipped 0.20 cents to 164.80 cents/pound as the lunch hour loomed Tuesday, while April futures dipped 0.45 cents to 163.72. January feeder cattle futures advanced 0.25 cents to 217.70 cents/pound and March feeders climbed 0.12 cents to 215.80.
Signs of firming spot markets may be limiting hog losses. CME swine futures have recently followed cash hog and wholesale pork prices lower lately. However, talk of firming spot quotes, as well as the cash market’s history of posting annual lows during the holiday season appear to be generating renewed bullish interest. February hog futures skidded 0.17 cents to 81.62 cents/pound late Tuesday morning, while June hogs stumbled 0.30 cents to 91.22.