Corn futures recovered Monday night gains. Soybeans seemingly rebounded from short-term moving average support last night, but proved vulnerable to fresh selling this morning. Given indications that the grain markets were following beans, it wasn’t surprising to see them turn mostly lower around midmorning, but corn proved surprisingly firm as lunchtime approached. May corn futures rose 1.0 cent to $3.89/bushel late Tuesday morning, while December crept up 1.25 to $4.145.
Country declines seemed to undercut beans and meal Tuesday morning. News that Brazil’s weekend crackdown didn’t clear all roads of striking truckers and their rigs, along with technical support, seemed to boost the soy complex overnight. However, talk of cash weakness apparently undercut prices, with nearby futures ending the morning testing support associated with their pivotal 40-day moving averages. May soybean futures fell 5.5 cents to $10.0825/bushel just before lunchtime Tuesday, while May soyoil moved up 0.21 cents to 33.04 cents/pound, and May meal slumped $3.9 to $329.6/ton.
Wheat markets also rebounded from midmorning losses. Despite the bearish global wheat situation and the apparent lack of demand for U.S. grain, wheat futures followed soybeans higher Monday night. They also suffered significantly as beans reversed, but later rebounded. The reason for their late-morning recovery, with Minneapolis leading the way, was not at all clear. May CBOT wheat gained 1.75 cents to $5.0175/bushel around midsession Tuesday, while May KC wheat rallied 5.0 cents to $5.3075/bushel, and May MWE wheat climbed 8.0 to $5.6325.
Technical slippage seemed to spur CME cattle selling. Although cattle futures have performed very well lately, nearby the April future dipped back below its 40-day moving average around midmorning. That triggered active short covering since the 40-day MA is often viewed as pivotal for markets. The whole cattle/feeder complex then followed April lower. April cattle futures dove 1.50 cents to 151.95 cents/pound as the lunch hour loomed Tuesday, while August cattle tumbled 1.37 cents to 142.30 cents/pound. Meanwhile, April feeder cattle futures declined 1.10 cents to 203.00 cents/pound, and August feeders plunged 1.50 to 201.20.
Concerns about spot weakness are apparently depressing hog futures. The cash hog markets have seemingly run out of the upward momentum that carried prices sharply higher last week. That may simply reflect cyclically large supplies and pork slippage. The nearby April contract is testing a pivotal chart area around 67.50. April hog futures slid 0.37 cents to 67.30 cents/pound in late Tuesday morning action, while June hogs sank 0.50 to 82.55.