Talk of growing global competition weighed on corn futures Tuesday night. The corn market continued Tuesday’s post-WASDE slide last night, with wire service sources arguing that increasing production from Ukraine and Argentina is weighing on yellow grain prices. Concurrent crop sector weakness probably encouraged selling as well. March corn slid 2.25 cents to $3.8575/bushel early Wednesday morning, while July dipped 2.25 to $4.015.
The soy complex suffered general weakness as well. Tuesday’s USDA data looked generally supportive of the soybean and product markets, although the soyoil numbers were not helpful. That development, along with renewed weakness in the crude and palm oil markets seemed to drag the soy complex lower. Soybean meal seemingly tried to firm on underlying demand strength, but couldn’t avoid the general decline. March soybean futures sank 2.5 cents to $9.665/bushel Tuesday night, while March soyoil lost 0.17 cents to 31.28 cents/pound, and March meal skidded $0.6 to $326.3/ton.
The wheat markets also continued sliding overnight. Tuesday’s WASDE report held generally negative implications for the wheat outlook, with both U.S. and global carryout forecasts rising from last month’s forecast. Ideas that the U.S. market is relatively expensive, along with fresh dollar strength are exerting persistent pressure once again. March CBOT wheat slumped 4.0 cents to $5.1775/bushel in pre-dawn Wednesday action, while March KC wheat sagged 2.5 to $5.515/bushel, and March MWE wheat slipped 0.75 to $5.6925.
Cattle futures ended quite mixed Tuesday. CME cattle prices continued rising early Tuesday morning as Chicago traders looked at the discounts nearby futures were carrying below last week’s cash quotes. The expiring February contract dipped below unchanged levels, but later led the most-active April future higher. Deferred futures couldn’t sustain the bounce. Still afternoon April strength suggests a firm opening today. April live cattle futures settled up 0.12 cents at 153.77 cents/pound Tuesday afternoon, while August cattle stumbled 0.67 cents to 144.10 cents/pound. Meanwhile, March feeder cattle futures plunged 1.60 cents to 202.02 cents/pound and May feeders dove 1.40 to 201.82.
Midsession data undercut CME hogs. Monday’s big Chicago losses very likely reflected fresh pessimism about short-term hog and pork prospects. The afternoon reports indicated relatively small cash losses and a rebound in pork prices, which spurred early Tuesday gains. Unfortunately for farmers and bullish interests, the midday spot quotes were not at all helpful, with the ultimate result being a mixed close. Late afternoon quotes were again weak, thereby pointing to a poor Wednesday opening. April hog futures declined 0.17 cents to 66.57 cents/pound as Tuesday’s CME session ended, while June hogs inched up 0.05 to 79.62.
The cotton market apparently lost its upward momentum Tuesday. Talk of strong U.S. cotton exports and a big cut in 2015 global production has boosted the cotton market lately. Indeed, it apparently topped major technical resistance yesterday. However, the fact that the WASDE report indicated yet another rise in Chinese stocks, along with overnight news that that country’s January imports had fallen almost 45% annually apparently sparked active selling. March cotton futures fell 0.71 cents to 61.80 cents/pound shortly after the New York dawn Wednesday, while the July contract dropped 0.84 to 62.53.