Corn continued it Monday decline overnight. Although Monday’s belated USDA Export Sales report looked quite bullish for corn, the subsequent release of the Export Inspections report seemed to outweigh that result and drag prices lower. Little news emerged last night, so futures continue sliding. Traders may be squaring positions prior to the end of the calendar year Wednesday. March corn futures slid 1.5 cents to $4.1125/bushel Monday night, while July lost 1.75 to $4.2625.
The soy complex is trading mixed to lower. As in the corn market, Monday’s bullish soybean Export Sales data were seemingly overruled by the disappointing figure on the USDA Export Inspections report. The bean and meal markets again seem to be reacting to ideas of strong demand and huge South American production coming in early 2015. Meanwhile, soyoil set back after responding strongly to prospect of flood-driven reductions to Malaysian palm oil supplies. January soybean futures slipped 0.5 cent to $10.4125/bushel early Tuesday morning, while January soyoil fell 0.22 to 32.57 cents/pound, and January meal skidded $1.0 to $376.4/ton.
The wheat markets couldn’t sustain their Monday bounce. News that Iraq had bought 200,000 tonnes of wheat from the U.S., Canada and Australia over the weekend apparently outweighed pragmatic selling after the Christmas Eve breakdown. The fact that nearby CBOT wheat is trading just above its 20-day moving average is probably key to short-term prospects. March CBOT wheat declined 5.0 cents to $6.105/bushel in predawn Tuesday trading, while March KC wheat slumped 4.5 to $6.43/bushel and March MWE wheat sagged 3.0 to $6.3425.
Cattle futures surged Monday. Last week’s late cash and wholesale strength supported cattle futures quite well at that time. Those gains also seemed to persuade traders that the recent breakdown had run its course and that cash quotes would continue last week’s rebound. Bears exiting short positions before year-end may have exaggerated Monday’s bullish resurgence. Afternoon beef strength seemingly favors a strong opening today as well. February live cattle jumped 2.52 cents to 165.00 cents/pound at Monday’s close, while April futures leapt 2.70 cents to 164.17. January feeder cattle futures spiked 3.72 cents to 217.45 cents/pound and March feeders soared 3.77 cents to 215.67.
Bullish demand ideas may have supported CME hogs. Cash hog and wholesale pork prices suffered a generally decline last week, as implied by the preliminary CME index quote for last Friday, which fell below its late-2013 nadir. However, that seemingly persuaded traders that the breakdown was overdone, especially if the drop reignites the robust demand that powered prices to stunning highs last spring and summer. On the other hand, Monday’s late spot quotes suggested a weak opening today. February hog futures ended Monday having rose 0.25 cents to 81.80 cents/pound, while June hogs climbed 0.75 cents to 91.52.