Ag markets diverged Tuesday morning
Doane Advisory Services | Hagadone News Network | UPDATED 10 years, 8 months AGO
The corn market seems directionless at midday Tuesday. The Grain and soy futures began the week trading firmly, although there was little fresh news. Corn futures have since turned downward, possibly reflecting disappointment with the weekly Export Inspections report. Current Midwest rainfall may also be weighing on prices. December corn skidded 0.25 cent to $3.6425 late Tuesday morning, while May edged down 0.5 to $3.855.
Talk of excessive moisture is reportedly boosting the soy complex. Little fresh soy news emerged over the weekend, but traders seemed to decide that the prospect of significant short-term rainfall might hurt the current soy crop; that may reflect increased disease potential. Weekend Asian gains in palm oil values are boosting soyoil prices. November soybean futures climbed 10.25 cents to $10.345/bushel around midsession Tuesday, while October soyoil rallied 0.20 cents to 32.21 cents/pound, and October soymeal advanced $7.9 to $371.0/ton.
The wheat markets turned decidedly lower Tuesday morning. Recent rainfall over the northern Plains hasn’t been conducive to a good spring wheat harvest, but traders seem to think it favors a strong start to winter wheat planting and growth. The tense Black Sea situation may be supporting prices, but that didn’t seem very evident this morning. December CBOT wheat fell 7.5 cents to $5.56/bushel as the lunch hour loomed Tuesday, while December KC wheat dropped 9.0 cents to $6.3375/bushel, and December MWE wheat slumped 6.75 to $6.23.
Friday’s cash strength is boosting cattle futures. The cash cattle market again defied bearish expectations last week, with Friday afternoon quote actually rebounding from the slippage seen Wednesday and Thursday. Traders are apparently reconsidering former bearish biases. October live cattle futures jumped 1.45 cents to 152.87 cents/pound late Tuesday morning, while December futures surged 1.75 to 155.70. Meanwhile, October feeder futures leapt 2.00 cents to 218.7 cents/pound and January feeders spiked 2.35 to 212.55.
Hog traders still anticipate September cash and pork recovery. Wholesale pork prices continued their mid-week surge last Friday. Moreover, last week’s hog kill proved quite small, thereby triggering suspicions that late-summer supplies are dwindling. Futures surged on today’s opening in response. October hogs soared 1.75 cents to 99.87 cents/pound just before lunchtime Tuesday, while December rallied 1.02 to 93.02.
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Most ag markets held up surprisingly well Tuesday
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Most ag markets held up surprisingly well Tuesday
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ARTICLES BY DOANE ADVISORY SERVICES

Sliding soy meal futures took starch out of crop markets Tuesday
Corn futures set back in concert with soybeans. Soybeans and meal led the crop markets sharply higher Monday night and Tuesday morning, with bulls apparently banking on robust demand and slow harvests to power prices higher. However, the surge ran out of momentum and bullish profit-taking and fresh selling greatly reduced the gains. Corn did close slightly higher. December corn futures ended Tuesday having gained 1.5 cents to $3.645/bushel, while May added 1.25 to $3.8675.

Tuesday's early meal reversal weighed on crop markets
Talk of slow harvesting is again boosting corn futures. Soybeans and meal led the crop markets higher overnight, but have set back from their highs. However, that has done little to discourage corn bulls, who reportedly were encouraged by the persistently slow harvest. December corn futures climbed 4.75 cents to $3.6775/bushel late Monday morning, while May added 4.0 to $3.895.

Ag markets posted mixed closes ahead of Thursday's USDA reports
Traders were looking forward to Thursday’s USDA reports Wednesday. Expectations for a massive corn harvest have weighed heavily upon the market this summer. However, the possibility that tomorrow’s USDA Crop Production and WASDE reports will hold surprises apparently spurred short-covering ahead of their release. Thus, corn futures traded slightly higher. December corn futures closed up 1.5 cents to $3.4575/bushel Wednesday, while May rose 1.25 to $3.6675.