Corn futures rallied despite seemingly bearish WASDE results. The corn market began Tuesday under modest pressure after the Crop Progress report indicated another big planting surge last week. The monthly USDA WASDE (Supply/Demand) report seemed likely to exert even more downward pressure, especially the forecast 2015/16 global carry-out figure. Nevertheless, futures rallied in response, possibly due to unwinding of soy/corn spreads. July corn futures gained 2.75 cents to $3.6325/bushel around midsession Tuesday, while December added 2.75 to $3.7825.
The soy complex posted a post-report drop. Soybean and product futures moved generally higher prior to the late-morning release of the WASDE report. Crude and palm gains continued supporting soyoil prices, while position-squaring seemed to push beans and meal a bit higher as well. That set the stage for a bearish market reaction when today’s report was released. Ultimately, large carryout projections for 2015/16 seemed to sink the soy complex. July soybean futures dove 15.75 cents to $9.5825/bushel as the lunch hour loomed Tuesday, while July soyoil sank 0.21 cents to 32.98 cents/pound, and July meal slumped $6.2 to $304.0/ton.
The wheat markets also reacted well to the USDA data. Monday’s Crop Progress report also seemed rather bearish for wheat futures, but those moved significantly higher in early Tuesday trading. Active short-seemingly powered the gains, although concurrent U.S. dollar losses probably encouraged bulls as well. The late-morning WASDE report seemingly presaged further pressure on the wheat sector during the coming months, since both U.S. and global carry-out forecasts topped expectations, but wheat futures joined corn in posting modest gains. July CBOT wheat futures rallied 5.0 to $4.86/bushel late Tuesday morning, while July KC wheat moved up 4.75 cents to $5.135/bushel, and July MWE wheat vaulted 4.25 to $5.41.
Cattle futures rebounded Tuesday morning. Although cattle futures have fluctuated rather widely lately, they’ve actually been confined to a fairly tight range when compared to the huge moves of recent months. At this point traders seem caught between ongoing firmness and bearish seasonal expectations, with talk of short-term strength seeming to power this morning’s rebound. June live cattle futures surged 0.80 cents to 151.05 cents/pound just before lunchtime Tuesday while August cattle advanced 0.47 to 149.27. Meanwhile, August feeder cattle futures fell 1.05 cents to 216.37 cents/pound, and November feeders stumbled 0.67 to 213.97.
Hog futures also bounced from early lows. The Chicago hog market continued struggling early this morning as traders worried about recent signs of spot market weakness. However, word from the country seemingly improved, as indicated by the manner in which the various 2015 contracts marched upward from their early lows. June hog futures climbed 0.82 cents to 85.10 cents/pound in late Tuesday morning trading, while December rose 0.45 to 70.47.