Ag markets moved mostly higher in early Tuesday trading

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Spillover strength supported corn futures Monday night. The prospect of a record U.S. corn harvest seemed to weigh upon prices overnight. Conversely, the losses were apparently limited by strength spilling over from the soybean and wheat pits. December corn futures slipped 0.5 cent to $4.4875/bushel early Tuesday morning, while May skidded 0.5 cent to $4.6925.

Supply/demand considerations seemingly boosted the soy complex. The industry had been expecting USDA data Friday; although those monthly reports probably won’t be released, bulls have been encouraged by private forecasts made beforehand. When combined with talk of a tight Chinese situation and a bounce in Asian palm oil prices last night, those factors boosted U.S. prices this morning. November soybeans rose 6.5 cents to $13.03/bushel around dawn Tuesday, while December soyoil bounced 0.30 cents to 40.20 cents/pound, and December soymeal edged up $1.9 to $422.6/ton.

Wheat futures continued their advance in overnight action. Indications of strong demand are providing persistent support for wheat futures. However, the latest surge almost surely reflects the strong possibility that Russian and Ukrainian production will decline next year, simply because excessive rains have prevented farmers from planting larger areas in those countries. December CBOT wheat climbed 4.75 cents to $6.995 bushel in early Tuesday trading, while December KCBT wheat gained 5.75 cents to $7.6225, and December MGE futures added 3.75 cents to $7.54.

Limited October notices seemingly sparked renewed cattle buying Monday evening. Yesterday was first notice day for October live cattle futures. Despite a substantial premium to last week’s cash quotes, the contract price attracted a surprisingly small number of deliveries against it. That very likely spurred the overnight rebound. December cattle futures crept up 0.12 cents to 132.42 around sunrise Tuesday, while April bounced 0.07 cents to 135.20. Meanwhile, November feeder cattle skidded 0.02 cents to 165.45 cents/pound, and January stabilized at 165.77.

News of a salmonella outbreak may support hog futures today. Although the latest rumblings about the hog and pork situation seem supportive of CME futures, overnight hog strength may have reflected news from the broiler industry. That is, news of a California salmonella outbreak associated with broilers has very likely persuaded traders that consumers will switch to pork over the short run. December hog futures advanced 0.30 cents to 88.17 cents/pound early Tuesday morning, while April rallied 0.12 cents to 90.67.

Cotton rebounded from Monday’s breakdown. Tropical Storm Karen proved much weaker than anticipated over the weekend, so the lack of damage to the Southeastern cotton crop sparked aggressive selling yesterday. There was no balancing news overnight, but it wasn’t terribly surprising to see prices bounce from yesterday’s lows. December cotton rose 0.24 cents to 84.26 cents/pound soon after sunrise Tuesday, while March came back by 0.22 to 84.67.



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