Corn dipped as beans and wheat set back Tuesday morning. Little corn news emerged over the weekend, so yellow grain traders seem to be looking to the soy and wheat complexes for leadership. Markets rose Monday night, but have setback from those highs. The weekly USDA Export Inspections report looked unremarkable. March corn dipped 1.5 cents to $3.8575/bushel late Tuesday morning, while July lost 1.25 to $4.015.
Weak basis quotes seemed to weigh on bean futures. Soybeans and meal again rallied on signs of underlying demand strength overnight. However, talk of weakening country basis levels apparently undercut soybean futures this morning. Dropping energy futures also exaggerated Asian palm weakness in depressing soyoil quotes. Meal held up remarkably well. The Export Sales figure hit the center of pre-report forecasts. March soybean futures gained 5.0 cents to $9.955/bushel around midsession Tuesday, while March soyoil fell 0.48 cents to 31.92 cents/pound, but March meal rallied $6.0 to $338.3/ton.
Reduced Black Sea sales are supporting the wheat markets. The Russia-Ukraine conflict is apparently proceeding apace, which may bode ill for winter wheat crops around the Black Sea. Meanwhile, shipments out of the region have slowed, thereby exerting diminished sales pressure at the lower end of the international market. The Export Sales result was unremarkable, which may be one reason futures have set back from overnight highs. March CBOT wheat skidded 0.5 cent to $5.325/bushel as the lunch hour loomed Tuesday, and March KC wheat edged 1.5 cents lower to $5.6125/bushel, while March MWE wheat advanced 4.0 to $5.91.
Cattle traders seem worried about short-term cash prospects. Despite last week’s cash market rise and the fact that fed cattle supplies usually reach annual lows during March, CME futures turned decidedly lower this morning. One has to suspect that market participants remain worried about short-term spot market developments. April plunged 1.85 cents to 151.37 cents/pound in late Tuesday morning action, while August cattle dove 1.82 cents to 142.17 cents/pound. Meanwhile, March feeder cattle futures tumbled 1.80 cents to 202.05 cents/pound and May feeders plummeted 2.00 to 200.52.
Fresh spot weakness is undermining hog futures. CME hogs ended last week strongly, which seemed justified Monday when the spot markets showed significant signs of firming. However, today’s talk apparently turned much weaker, as signified by the big losses posted by the various swine contracts. April hog futures dropped 1.47 cents higher to 64.55 cents/pound just before lunchtime Tuesday, while June hogs tanked by 1.42 to 78.70.