The grain markets seemed to follow soybeans higher Tuesday morning. Although the weekly Crop Progress report indicated corn condition readings had improved last week, corn futures rose slightly in overnight trading. There was little news, which suggested the rally was powered by concurrent gains in the soybean market, where condition ratings fell short of expectations. December corn rose 0.25 cent to $4.535/bushel early Tuesday morning, and May added 1.5 cents to $4.7575.
The soy complex bounced from recent losses in early Tuesday action. The weekly USDA Crop Progress report stated soybean acres rated good-to-excellent unchanged from last week Monday afternoon. That fell short of forecasts, which probably sparked fresh CBOT buying. Moreover, after having fallen sharply the past three sessions, the legume market was probably ready for a technical rebound. November soybeans surged 13.25 cents to $13.21/bushel around dawn Tuesday, while October soyoil slid inched up 0.02 cents to 41.99 cents/pound, and October soymeal climbed $5.9 to $417.0/ton.
The wheat markets also rose modestly. The weekly Crop Progress seemed to affect wheat futures, since the spring wheat harvest is virtually complete and winter wheat plantings are quite normal. Spillover from the soy complex may have supported the rise, but continued talk of strong demand from China seems the most important factor at the moment. December CBOT wheat edged 0.5 cent higher to $6.54/bushel in early Tuesday trading, while December KCBT wheat lifted 0.25 cent to $6.98, and December MGE futures advanced 2.25 cents to $7.01.
Beef gains boosted cattle futures overnight. Yesterday the cattle market reacted well to last Friday's bullish USDA Cattle on Feed report and the subsequent rise in country cattle values. The rally persisted Monday night after the afternoon wholesale report indicated a substantial rise in beef cutout values, which in turn may bode well for the cash markets. October cattle futures ascended 0.25 cents to 126.85 cents/pound around sunrise Tuesday, while December grew 0.20 cents to 130.70. Meanwhile, October feeder cattle gained 0.40 cents to 162.40 cents/pound and January leapt added 0.27 cents to 162.00.
Technical considerations may have exaggerated early hog gains. Hog futures rebounded from last week's lows Monday, but the afternoon cash and wholesale reports were not supportive. Nevertheless, futures rose again overnight. That probably reflected continued cattle strength, as well as the fact that Monday's lows coincided with technical support, thereby seeming to set the stage for a short-term rally. October hog futures ran up 0.40 cents to 90.57 cents/pound early Tuesday morning, while December rallied 0.40 cents to 86.82.
The soy advance may also have boosted cotton futures. The weekly Crop Progress report seemed rather bearish, especially with the Texas crop rating improving slightly. Dry weather forecasts for the harvest also appeared rather negative, as did the overnight prediction of a record Indian harvest. Ultimately, the same strength affecting the Chicago crop markets also seemed to be powering early cotton gains. December cotton rallied 0.59 cents to 84.86 cents/pound Tuesday morning, while March rose 0.51 to 84.69.