Corn futures stabilized after the WASDE report. The Monday night U.S. dollar surge and concurrent dive in equity index futures weighed on the commodity sector prior to the late-morning release of the Monthly USDA Supply/Demand (WASDE) report. The data looked bullish for corn futures, since it stated ending 2014/15 U.S. stocks 50 million bushels below last month’s figure. The rebound seemed rather muted, with futures slipping from reaction highs. May corn futures settled down 0.75 cent to $3.88/bushel Tuesday, while December lost 0.5 to $4.1225.
The soy complex reacted weakly to the USDA report. Tuesday’s early combination of dollar strength and stock losses also weighed on the soybean and product markets this morning, although evidence of robust demand apparently powered meal futures slightly higher by midsession. Prices weakened in the wake of the WASDE report, with largely unchanged U.S. and global data apparently disappointing traders. May soybean futures slumped 8.75 cents to $9.845/bushel as Tuesday’s CBOT session ended, while May soyoil slipped 0.04 cents to 30.96 cents/pound, and May meal skidded $3.1 to $331.0/ton.
The wheat markets reversed their early-Tuesday losses. Despite suspicions that the recent breakdown had rendered U.S. wheat much more competitive on the global market, wheat futures couldn’t avoid the negative implications of today’s financial market moves. That changed after the WASDE report indicated U.S. ending stocks slightly below previous forecasts. May CBOT wheat climbed 3.25 cents to $4.9325/bushel in late Tuesday action, while May KC wheat advanced 5.5 cents to $5.35/bushel, and May MWE wheat rallied 4.0 to $5.6475.
Cattle futures diverged Tuesday. Last week’s cash surge and mixed-to-firm wholesale readings apparently supported nearby cattle futures today. Conversely, the cattle/beef industry is not confident about the second half outlook, when production will increase seasonally. Today’s financial market action didn’t help the bullish cause. April cattle futures surged 0.75 cents to 154.75 cents/pound in Tuesday trading, while August cattle sank 0.50 cents to 144.07 cents/pound. Meanwhile, April feeder cattle futures leapt 2.10 cents to 210.50 cents/pound, and August feeders gained 0.47 to 209.12.
Talk of spot weakness continued weighing on CME hogs. Cash hog and pork prices have not performed well lately, thereby reinforcing bearish ideas about excessive supplies and flattened demand. Those make the premiums built into spring and summer futures look excessive. April hog futures ended Tuesday having sagged 0.10 cents to 65.97 cents/pound, while June hogs tumbled 0.62 to 78.67.