Corn futures rose moderately Tuesday morning. Early Tuesday losses in nearby soybeans and wheat seemed bearish for corn prices as well, especially with the U.S. dollar rising significantly. Traders cited short-covering for a portion of the surprising rise, while we are inclined to give some credit to harvest delays caused by current Corn Belt rainfall. December corn futures climbed 5.5 cents to at $4.425/bushel Tuesday morning and May rose 4.75 cents to $4.63/.
The soy complex was decidedly mixed. Although persistent rumors of Chinese buying have recently supported soybean futures, the nearby contracts dipped Tuesday morning. One has to wonder if the concurrent U.S. dollar bounce undercut prices somewhat. Talk of strong demand seemed to boost soyoil values, whereas the likely unwinding of meal/oil spreads may have depressed meal futures. November soybeans slipped 2.25 cent to $12.7075/bushel in Tuesday morning trading, while December soyoil surged 0.49 cents to 40.88 cents/pound, and December soymeal sagged $4.4 to $403.1/ton.
Indian news may have depressed the wheat markets Tuesday. In contrast to Tuesday morning gains in the corn pit, wheat futures moved generally lower. U.S dollar strength may have weighed upon golden grain values somewhat, but bears were probably reacting to news that Indian officials are set to lower their floor price for exported product, which has the potential to undercut the global market. December CBOT wheat tumbled 4.5 cents to $6.88/bushel around midsession Tuesday, while December KCBT wheat slid 2.75 cents to $7.5875, and December MGE futures lost 3.25 cents to $7.5325.
Delivery news may have depressed cattle futures. Last Friday’s cash strength and Monday’s talk of wholesale firmness seemed to set a bullish tone for the short-term cattle futures outlook. However, the afternoon CME report indicated that 33 fresh delivery notices had been posted against expiring October futures, thereby suggesting short-term prospects are less promising. December cattle futures fell 0.32 cents to 132.82 cents/pound just before lunchtime Tuesday, while April slid 0.35 to 135.30. Meanwhile, November feeder cattle plunged 1.25 cents to 168.15 cents/pound, and January dove 1.20 to 167.27.
The hog market proved surprisingly strong Tuesday morning. Although major seasonal weakness over the next 6-8 weeks is expected to depress the hog and pork complex, Monday’s expiration of the October contract left nearby December hog futures at a substantial discount to suspected cash values. That difference seemed to spark active buying this morning. December hog futures leapt 1.32 cents to 87.67 cents/pound late Tuesday morning, while April jumped 0.80 cents to 90.25.