Ukraine news may be supporting corn futures. Dipping soybean and wheat prices are probably weighing somewhat on corn futures, with bears also encouraged by talk of active farmer selling. However, yellow grain values have exhibited considerable firmness today, which may mark a response to a forecast of a 2.9 million-tonne drop in Ukraine’s 2015 crop. May corn futures rose 2.75 cent to $3.93/bushel around midsession Tuesday, while December corn edged 2.25 higher to $4.165.
The soy complex set back from technical resistance in early Tuesday action. Monday’s sizeable soy gains were impressive, especially when one considers the time of year and the flow of South American beans and products to the global market. However, the rally left nearby futures facing significant technical resistance. This morning’s bounce in the value of the U.S. dollar may also be depressing prices. May soybean futures slid 5.25 cents to $9.7875/bushel late Tuesday morning, while May soyoil dipped 0.11 cents to 31.04 cents/pound, and May meal sagged $1.9 to $325.4/ton.
State wheat ratings probably triggered wheat selling. Recent talk of southern Plains dryness likely had traders thinking Monday’s state condition reports on winter wheat would come in lower, but readings for Texas and Oklahoma showed big improvements. Monday’s futures setbacks from early highs may also have sparked technical selling. Longer-term forecasts also imply widespread Plains precipitation next month. May CBOT wheat fell 8.75 cents to $5.2525/bushel just before lunchtime Tuesday, while May KC wheat tumbled 10.5 cents to $5.64/bushel, and May MWE wheat sank 9.0 to $5.81.
Cattle futures seemed to lose their bullish momentum Tuesday morning. Cash market gains powered Monday’s big cattle rally, with afternoon beef gains also seeming quite supportive. However, CME prices have turned mixed to lower after today’s opening, thereby seeming to reflect bearish expectations for late spring and summer. April cattle futures rallied 0.27 cents to 161.62 cents/pound in late Tuesday morning action, while August cattle stalled at 150.22 cents/pound. Meanwhile, April feeder cattle futures slumped 0.60 cents to 218.57 cents/pound, and August feeders dropped 0.82 to 218.85.
Hog futures staged a late Tuesday morning rebound. Monday’s USDA Cold Storage report indicated a big February jump in U.S. pork supplies, which was generally anticipated due to the West Coast port situation. Futures proved quite volatile in early trading, but turned generally higher by late morning. That probably reflected reports of firming pork prices. April hog futures climbed 0.47 cents to 59.72 cents/pound as the lunch hour loomed Tuesday, while June hogs jumped 1.65 to 75.30.