Export news boosted corn Tuesday morning. News of a sizeable South Korean purchase of U.S. corn was seconded by a story about strong Chinese demand seemingly offset concerns about China’s recent rejections of several shipments. That set apparently set the stage for a positive reaction to early news of sizeable export sales. March corn futures rallied 5.25 cents to $4.285/bushel by late Tuesday morning, while May added 5.25 cents to 4.37.
Meal reportedly led the soy complex higher this morning. Bullish traders apparently bought soybean meal futures rather aggressively this morning, with wire service sources citing widespread bargain hunting. News that Egypt had bought 25,000 tonnes of soyoil from Cargill overnight was seemingly offset by Asian palm weakness. Talk of growing South American heat may also have boosted prices. January soybeans surged 10.25 cents to $13.48/bushel just before lunchtime Tuesday, while January soyoil dipped 0.28 cents to 39.47 cents/pound, and January soymeal advanced $7.5 to $446.5/ton.
Spillover strength seemingly pulled wheat futures higher as well. Although U.S. wheat was excluded from the deal, news that Egypt had bought large quantities of Black Sea wheat this morning seemed to offer support for the wheat markets. Concurrent gains in the corn and bean pits very likely encouraged bulls as well. March CBOT wheat futures inched up 2.0 cents to $6.2275/bushel in late Tuesday morning action, and March KCBT wheat futures edged up 0.5 cent to $6.66, while March MWE futures crept 0.25 cent higher to $6.545.
Cattle futures set back from chart resistance in early trading. A big rise in beef cutout values boosted cattle prices Monday, but CME prices have since declined, possibly due to ideas that the beef price rise will prove temporary. Nearby futures also failed to overcome important technical resistance yesterday, thereby setting the stage for today’s slippage. February cattle futures slumped 0.12 cents to 133.37 cents/pound around midsession Tuesday, and April futures stalled at 134.35. Meanwhile, January feeder cattle futures fell 0.85 to 167.55 cents/pound and March tumbled 0.80 cents to 166.57.
Resurgent pork prices are supporting hog futures. Ideas that current hog supplies are adequate have weighed upon the swine market lately. Stunningly large pork gains boosted hog prices overnight, but bulls couldn’t sustain the advance. Increased supplies are apparently weighing upon CME quotes once again. February hog futures dropped 0.47 cents to 86.15 cents/pound in late Tuesday morning action, but June edged up 0.07 to 99.07.