The WASDE report weighed on corn futures. Crop market traders seemed to be liquidating long positions ahead of the late-morning release of the monthly USDA Supply/Demand (WASDE) report, since futures declined modestly at that time. The losses grew later in the day, since a sizeable reduction in U.S. supplies was more than offset by a big increase in the forecast global carryout. March corn closed 3.25 cents lower at $3.88/bushel Tuesday, while July slid 3.0 to $4.0375.
The soy complex accompanied the grain markets lower Tuesday. Talk of large South American production and weak crude and palm oil markets apparently undercut the soybean and product markets Monday night and Tuesday morning. The WASDE report initially supported beans and meal, since bean usage was boosted and stocks were cut. Increased oil stocks weighed, with the whole complex moving lower as the day passed. March soybean futures ended Tuesday having tumbled 9.5 cents to $9.69/bushel, while March soyoil sank 0.56 cents to 31.45 cents/pound, while March meal sagged $2.7 to $326.9/ton.
The wheat markets reacted poorly to the WASDE data. Supportive demand news seemingly did little to support the wheat markets overnight, which may have partially reflected an upward revision to Australian production. Prices remained rather weak through the release of the WASDE report, then moved even lower in response to comparatively high estimates for both U.S. and global stockpiles. March CBOT wheat dropped 8.0 cents to $5.2175/bushel in late-Tuesday action, while March KC wheat fell 9.5 to $5.54/bushel, and March MWE wheat dipped 6.0 to $5.70.
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. 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. 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.