Corn futures dipped in Monday night action. After posting a surprising bounce Monday afternoon, the corn market slid slightly in overnight trading. Concerns about Chinese demand after that country’s officials recently discovered that several shipments of U.S. corn were contaminated with an unapproved GMO strain. March corn slipped 0.75 cent to $4.2375/bushel early Tuesday morning, while May dipped 0.75 to $4.3225.
Soybeans proved mixed in early Tuesday trading. Slumping palm oil prices weighed upon soybean oil futures Monday night, but there little fresh news concerning beans or meal emerged. Traders are probably looking to see how the global situation plays out over the short run, with huge supplies being met by vigorous demand. January soybean futures inched up 0.75 cents to $13.22/bushel around dawn Tuesday, while January soyoil declined 0.08 cents to 40.52 cents/pound, and January soymeal lost $0.9 to $427.9/ton.
Wheat markets proved surprisingly firm overnight. Early this morning Australia’s agriculture department ABARE announced that its forthcoming wheat harvest will total 26.213 million tonnes, thereby topping the prior estimate at 24.467 MMT. And yet U.S. futures rose moderately in early trading. That may have reflected widespread bargain hunting and a sustained reaction to forecasts for frigid Great Plains weather during the days just ahead. March CBOT wheat futures inched up 0.75 cent to $6.625/bushel in early Tuesday action, while March KCBT wheat futures gained 1.0 cent to $7.0675, and March MWE futures added 2.5 to $7.05.
Cattle futures moved mostly higher Monday night. Talk of frigid Great Plains weather later this week and the potential for a seasonal advance through early December may have supported cattle futures overnight. Cutout values rose yesterday afternoon, but the modest increase in the choice quote was not impressive. February cattle futures ran up 0.17 cents to 134.45 cents/pound as the sun rose over Chicago Tuesday, while the April contract added 0.07 cents to 135.07. Meanwhile, January feeder cattle crept up 0.12 cents to 165.47 cents/pound, and March feeders gained 0.12 to 165.80.
Hogs also posted a modest general rally in early trading. Ideas that cash hog prices have posted a seasonal low and have begun a winter rally seem to be supporting CME lean hog futures at this point. Monday’s big pork price increase very likely encouraged bulls, but mixed-to-weak cash quotes probably stifled gains. February hog futures advanced 0.10 cents to 90.55 cents/pound early Tuesday morning, while June slid 0.02 to 100.37.