Ag markets diverged rather widely Tuesday morning

Corn futures seem to be facing pragmatic selling. Monday's monthly USDA WASDE report was seen as bullish for corn. Indeed, CBOT futures reacted well to the news, but ended the day rather weakly. The nearby contracts are still trading above short-term moving average support. However, pragmatic traders may be selling in response to the surprisingly weak reaction to the bullish news. March corn slipped 2.5 cents to $4.405/bushel late Tuesday morning, while May dipped 3.25 to $4.455.

Firming cash prices reportedly boosted the soy complex Tuesday morning. Soybean and meal futures seemed headed substantially lower in early trading, especially after the bearish results of Monday's WASDE report truncated what had looked like a bullish breakout on the charts. Nevertheless, early reports of surprising cash strength apparently triggered a fresh reversal by late morning. March soybeans had advanced 6.0 cents to $13.315/bushel around midsession Tuesday, while March soyoil gained 0.06 cents to 38.79 cents/pound, and March soymeal bounced $4.2 to $448.2/ton.

Wheat continued building on recent gains. The wheat markets posted varying gains Tuesday morning, due largely to the supportive nature of the WASDE data. The nearby Kansas City and Minneapolis contracts have also broken out above technical resistance, whereas Chicago prices are struggling at comparable points. Worries about Canadian transport problems seem to be boosting the Minneapolis market. March CBOT wheat futures rose 3.25 cents to $5.88/bushel just before lunchtime Thursday, while March KCBT wheat futures ran up 5.5 cents to $6.6825, and March MWE futures surged 10.0 to $6.615.

Talk of rising packer bids apparently sent cattle futures higher. The cattle market began the week rather poorly, which probably reflected the negative influence of flat-to-weak wholesale prices. However, packer buyers reportedly raised their bids for southern Plains cattle this morning, thereby spurring strong buying in the CME pit. April cattle futures jumped 1.25 cents to 141.42 cents/pound in late Tuesday morning action, while August climbed 0.65 cents to 130.92. Meanwhile, March feeder cattle leapt 1.05 cents to 168.95 cents/pound, and May soared 0.97 to 170.50.

Hog futures remained relatively weak in early Tuesday trading. The cash hog and wholesale pork markets again appeared to fall short of bullish expectations Monday, thereby undermining futures priced at substantial premiums to spot values. That seems to be the case again this morning, as indicated by the early slippage. April hogs skidded 0.12 cents to 94.62 cents/pound just before lunchtime Tuesday, while June sank 0.25 to 105.17.


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