Corn benefited from soybean strength Tuesday. Soybeans rallied to start this week's trading, with traders citing deteriorating South American growing conditions and lower private forecasts for the Brazilian crop. Those concerns probably apply to S.A. corn as well. Robust demand for U.S. corn is apparently providing persistent support, but traders remain very aware of the size of current stocks. March corn lifted 4.25 cents to $4.495/bushel late Tuesday, while May rose 4.75 to $4.555.
Talk of declining South American production sparked Tuesday's soy surge. After proving quite good early in the current growing season, Brazilian conditions have reportedly deteriorated lately. Argentine conditions have generally been poorer than those in Brazil. Given the tightness of the U.S. situation, those developments sent CBOT prices sharply higher. Big Asian palm gains also encouraged buying, despite the bearish nature of the late-morning NOPA crush data. March soybeans closed 23.5 cents higher at $13.61/bushel Tuesday afternoon, while March soyoil soared 1.21 cents to 41.36 cents/pound, and March soymeal climbed $6.9 to $456.9/ton.
Production and transport concerns boosted wheat prices again Tuesday. Wheat futures very likely rose in concert with surging soy prices today, but traders also cited the potential for weather damage to U.S. winter wheat and Canada's transport problems as supporting spring wheat values. March CBOT wheat futures jumped 13.5 cents at $6.12/bushel at their Tuesday settlement, while March KCBT wheat futures advanced 11.25 cents to $6.8575, and March MWE futures rallied 12.75 to $6.7925.
Big beef gains sent cattle futures higher. Cattle futures set back sharply last Friday, since traders seemed to be disappointed with late-week cash action. However, the Chicago market rebounded sharply today, because wholesale prices soared Monday and again this morning. This may bode well for short-term cattle price prospects across the country and in Chicago. April cattle futures surged 1.02 cents to 142.12 cents/pound at their Tuesday close, while August climbed 0.85 cents to 132.00. Meanwhile, March feeder cattle ran up 1.22 cents to 171.70 cents/pound, and May spiked 1.97 to 173.75.
Talk of tightening supplies spurred big hog gains Tuesday. Recent cash and wholesale news has been supportive of the hog and pork complex, but the increases have not been large enough to explain the bullish breakout posted lately. That very likely represents a trader reaction to the growing fears that the PEDV outbreak is sharply reducing market hog supplies. April hogs zoomed up 1.20 cents to 97.37 cents/pound in late Tuesday trading, while June surged 1.20 to 107.32.