Ag markets were mixed early Tuesday morning

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After sustaining significant gains over the prior three sessions, corn futures hardly moved Monday night. The drop probably marked a reaction to the sizeable losses suffered by soybeans overnight, although we would also point out that nearby corn futures settled just below resistance associated with their 10-day moving averages Monday afternoon. May corn had slipped 0.75 cent to $710.5/bushel early Tuesday morning, while December dipped 1.0 cent to $5.53.

CBOT soybean futures seemed to suffer a belated reaction to the Monday morning Export Inspections report overnight. Indeed, it was rather surprising that traders did not respond more negatively to news that the latest total around 17 million pounds fell 58% below the previous result. Traders may also be anticipating more arrivals of Brazilian beans at their ports during the days ahead, especially after the latest report indicated their massive harvest is now over 50% complete. May soybeans fell 9.5 cents to $14.70/bushel during early Tuesday trading, while May soyoil slid 0.30 cents to 50.14 cents/pound, and May meal inched $2.3 lower to $435.7/ton.

Wheat futures also declined moderately early Tuesday morning, with weakness also seeming to spill over from the soybean market. Traders continue hoping recent price weakness will spark improved demand from the domestic and export sectors, whereas much improved production prospects are rather clearly weighing upon new crop prospects. May CBOT wheat futures dropped 3.25 cents to $6.9675/bushel in the overnight hours, while May KCBT wheat skidded 4.0 cents to $7.3225, and May MGE futures declined 3.0 cents to $7.91.

Expectations of a cash market advance later this week probably powered the gains posted by live cattle futures Monday, but the market was mixed to lower overnight. The slippage was rather surprising since the late afternoon wholesale report came in better than it had around midsession. The slippage may represent a belated reaction to the January beef trade data, which fell short of the December total but topped that from January 2012 by about 5%. April cattle edged up 0.05 cents to 128.17 cents/pound early Tuesday morning, while August skidded 0.05 cents to 124.60. Meanwhile, April feeder cattle were unchanged at 141.37 cents/pound, while August gained 0.220 cents to 150.55.

Hog futures were decidedly mixed early Tuesday morning, possibly due to trader uncertainty about the course of mid-March events. They have seemingly been anticipating persistent weakness through late March and early April in recent weeks, but the sizeable Monday cash rebound, as well as the rise posted by pork cutout may be inspiring thoughts of an early end to the usual late-winter decline. April hogs slipped 0.22 cents to 80.92 cents/pound in predawn trading, while June declined 0.10 cents to 90.75.

After rallying strongly last week, cotton futures have begun this week under pressure. Trader disappointment with the Friday morning WASDE report triggered the sell-off, with many bulls apparently taking profits on previously established position. Conversely, the nearby May contract has seemingly found support around its 10-day moving average, so numerous market participants are probably anticipating a rebound from this point. May cotton slipped 0.27 cents to 86.45, while December lost 0.38 cents to 86.30.



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