Ag markets mixed again Tuesday morning

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Corn futures were mixed Tuesday morning. Tight old crop supplies apparently supported the nearby July contract, whereas the results of the weekly USDA Crop Progress report weighed upon its deferred counterparts. The report indicated producers had made surprising progress in getting the yellow grain seeded last week, with the latest reading, at 91% complete, being only 4% behind the five-year average. July corn advanced 4.0 cents to $6.5975 per bushel in Tuesday morning trading, while December dropped 9.5 cents to $5.505.

Soybean futures moved generally lower in early Tuesday action. The tight old crop situation may have eased a bit in the wake of recent gains, although the July futures loss was not particularly large. The weekly Crop Progress report did not seem very negative for beans, but weather forecasts pointing to a significant opportunity to plant during the days just ahead apparently weighed upon deferred futures. July soybean futures dipped 5.5 cents to $15.27/bushel Tuesday morning, and July soyoil sank 0.19 cents to 48.47 cents/pound, whereas July soybean meal edged $1.1 lower to $453.3/ton.

After weakening somewhat in overnight trading, wheat futures proved surprisingly firm later in Tuesday morning activity. The reason for that strength was not readily apparent, but it may have been related to news that Japanese officials included U.S. wheat in tender issued Monday night. That suggests their ban on U.S. wheat issued in the wake of recent news of wild GMO plants may be lifted rather quickly. July CBOT wheat futures rose 1.25 cents to $7.10/bushel around midsession Tuesday, while July KCBT wheat gained 0.25 cents to $7.5175 and July MGE futures climbed 1.0 cents to $8.24.

Although few in the livestock industry seem very optimistic about the cattle outlook at this point, CME live cattle futures bounced from early lows later in the morning. That may reflect growing suspicions that cash prices will remain steady this week, although persistent wholesale weakness is not encouraging. June cattle dipped 0.05 cents to 120.67 cents/pound just before lunchtime Tuesday, while December bounced 0.30 to 125.20. Meanwhile, feeder cattle futures reacted well to signs of deferred corn weakness, with the August contract advancing 0.60 cents to 145.02 cents/pound, and November gaining 0.42 cents to 150.02.

Hog traders apparently expect the spring rally in hog and pork values to continue through at least mid-June, since futures rose substantially again Tuesday morning. The wholesale market has not been terribly supportive lately, but ongoing cash gains are apparently encouraging bulls. June hog futures surged 0.70 cents to 96.52 cents/pound late Tuesday morning, while December added 0.47 cents to 80.77.



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