Corn futures fell in reaction to unexpected central-Iowa showers Tuesday. Cooler weather with moderate daily highs around 80 degrees this week will create favorable weather conditions for corn pollination. The corn crop condition rating at 63% good to excellent was unchanged and far above the drought-driven 26% rating posted last year. The prospect of increased production rather clearly depressed the corn market. However, the tight old crop situation probably limited declines. September corn futures are 18.25 cents lower to $5.225/bushel and the December contract fell 12.5 cents to $4.855.
Soybean futures followed corn lower in response to the beneficial weather forecasts. Large drops in soybean basis bids also exacerbated the bearish situation. In the news, oil world said that low Argentine soybean exports this season are likely to cause stronger export demand for U.S. new crop beans. Decreasing palm oil prices due to sluggish export demand concerns also encouraged selling. August soybean futures plummeted 57.75 cents to $14.625/bushel at the end of the day. August soyoil dove 0.63 cents to 44.78 cents/pound, and August soybean meal fell $14.6 to $487.8/ton. November soybean prices plunged 28.25 cents to $12.6025 /bushel.
Wheat futures followed corn and soybeans lower Tuesday. The golden grain markets did not seem to suffer much from the bearish implications of fine Midwest weather forecasts, since Minneapolis spring wheat futures declined only marginally. The prospect of huge domestic corn and bean supplies may have been the factor weighing heavily upon the winter wheat contracts. September CBOT wheat fell 6.0 cents to $6.5375/bushel at its Tuesday close, while September KCBT wheat sagged 3.0 cents to $6.99 and September MGE futures slid 2.75 cents to $7.44.
Cattle futures rallied moderately Tuesday. There was no obvious reason for the rise, especially with the wholesale market dropping sharply before noon. Optimism spilling over from the hog and feeder cattle pits probably encouraged buying, especially among those looking for a seasonal rebound from annual cash market lows in the near future. August cattle closed just 0.02 cents higher at 121.90 cents/pound Tuesday afternoon, while December added 0.25 cents to 128.60. August feeder futures surged 0.67 cents to 153.60 cents/pound in reaction to the CBOT weakness, while November advanced 0.62 cents to 159.40.
The Cold Storage report encouraged hog market bulls. Not only did the monthly USDA Cold Storage report suggest spring pork demand was surprisingly strong, the midsession jump in wholesale values seemingly held similar implications. August hog futures leapt 2.05 cents to 99.17 cents/pound in late Tuesday trading, while December climbed 0.68 cents to 82.97.