Corn moved modestly higher Tuesday morning. Corn futures have bounced slightly from Monday’s lows, with the nearby contracts apparently echoing early soybean gains. Traders are probably squaring positions ahead of tomorrow’s USDA WASDE report, with many reportedly looking for an increase in forecast U.S. carryout. March corn futures rose 3.0 cents to $3.9325/bushel late Tuesday morning, while July added 3.25 to $4.085.
The soy complex is trading slightly higher. The soybean and product markets posted a concerted advance in early Tuesday trading, with bulls apparently relying upon talk of surging exports and a cut in U.S. carryout forecasts on tomorrow’s USDA supply/demand report. Prices turned decidedly mixed by late morning, possibly due to the big losses in Chinese & U.S. financial markets, but later turned generally higher once again. January soybean futures moved up 3.75 cents to $10.4725/bushel around midsession Tuesday, while January soyoil rallied 0.31 cents to 32.19 cents/pound, and January meal gained $2.4 to $372.5/ton.
Russian statements are weighing on the wheat markets. Wheat futures have recently been supported by talk that Russian officials might restrict that country’s short-term exports. However, Russia’s Deputy Prime Minister stated early this morning that officials are not discussing such restrictions, which rather clearly sparked futures selling. March CBOT wheat fell 11.25 cents to $5.8675/bushel in late Tuesday morning action, while March KC wheat dove 14.75 cents to $6.245/bushel and March MWE wheat tumbled 12.25 to $6.0975.
Cattle futures are trying to rebound. Traders may now suspect that recent cattle and beef losses have been overdone, especially since the farm and wholesale supplies will almost surely remain extremely tight through much of 2015. The nearby contracts have sustained sizeable gains through midsession, but the deferred contracts have turned lower once again. February live cattle jumped 1.42 cents to 163.30 cents/pound shortly before lunchtime Tuesday, while April ran up 1.30 to 163.00. January feeder cattle futures gained 0.27 cents to 232.15 cents/pound, but January feeders dropped 1.12 to 227.10.
Hog traders seem pessimistic about 2015 prospects. The expiring December hog future edged upward this morning, but deferred futures have posted significant losses. They are apparently not benefiting from the cattle rebound. Ultimately, it looks as if hog and pork traders worry about a big resurgence of hog and pork supplies next year. February hog futures slumped 0.55 cents to 84.57 cents/pound late Tuesday morning, while June hogs sank 0.60 cents to 91.75.