After rebounding from large weekend losses Monday night, corn futures had dipped to moderately lower levels by late Tuesday morning. There seemed to be no particular news behind the morning setback, but it may represent a reaction to several items indicating that while the price breakdown has apparently sparked buying interest, importers are going to South America rather than the U.S. for their corn. May corn had fallen 5.5 cents to $6.3675/bushel late Tuesday morning, while December lost 3.5 cents to $5.32.
Old crop soybean futures could not hold onto their modest overnight gains Tuesday morning. As with corn, talk that new business being generated by the late breakdown is being done in South America may be undercutting the U.S. market. An Oil World suggestion that the worst of 2013 Brazilian export problems are probably behind them may also be weighing upon North American prices. May soybeans edged downward 2.5 cents to $13.3825/bushel just before lunchtime Tuesday, while May soyoil fell 0.48 cents to 49.58 cents/pound, whereas May meal gained $1.0 to $399.5/ton.
Wheat futures proved better able to onto their Monday night gains Tuesday morning. Bulls might argue that poor winter wheat condition ratings on the first national crop condition report of the 2013 season are supporting the market, but having the Kansas City market lag Chicago and Minneapolis suggests otherwise. We suspect recent news of moderate sales to South Korean interests is supporting wheat markets. May CBOT wheat futures rose 1.75 cents to $6.6575/bushel in late Tuesday morning trading, while May KCBT wheat advanced 0.25 cent to $7.10, and May MGE futures surged 9.25 cents to $7.75.
Cattle futures proved unable to sustain their upward momentum Tuesday morning. Traders may be worried that the big cash price jump posted last week cannot be sustained, especially if the wholesale market does not lead the way higher. The fact that bulls could not push the nearby April future above its 10-day moving average may also have triggered strong technical selling. April cattle slipped 0.42 cents to 128.32 cents/pound around midsession Tuesday, while August skidded 0.72 cents to 124.07. May feeder cattle futures also declined; losing 0.25 cents to 147.42 cents/pound, and August dropped 0.62 cents to 153.75.
The hog market remained generally strong Tuesday morning, although the summer contracts rather clearly outperformed their spring counterparts. That phenomenon does not lend itself to quick explanation. Ultimately, optimism about the spring-summer outlook is very likely supporting the summer contracts. April hogs slid 0.05 cents to 81.27 cents/pound in late Tuesday morning trading, while June climbed 0.62 cents to 92.20.