Ag markets proved generally weak Tuesday

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Corn and beans couldn’t sustain early Tuesday gains. The planted acreage report from the USDA’s FSA division made few major changes to its August numbers, but traders unfamiliar with the data apparently bought futures in reaction to the early morning news. However, further consideration seemed to spark selling, with nearby futures declining slightly later in the day. December corn lost 2.5 cents to $4.54/bushel at Tuesday’s close, while May slid 2.5 cents to $4.7475.

Soybeans reversed sharply from early highs. The FSA report also indicated major reduction in soybean acreage due to failed plantings and ‘prevented’ plantings. That news also seemed to boost the soy complex in early trading. However, the reductions were actually smaller than those stated on the August report, which very likely explains the subsequent reversal to the downside. November soybeans tumbled 12.0 cents to $13.3625/bushel just before lunchtime Tuesday, while October soyoil slumped 0.17 cents to 41.96 cents/pound, and October soymeal sank $4.0 to $427.2/ton.

The wheat markets held up surprisingly well Tuesday afternoon. The Crop Progress report stated the spring wheat harvest and winter wheat plantings near expected levels Monday, so traders probably paid it little attention. Ultimately, early morning gains and the subsequent setback made it rather clear that fluctuations in the corn and soybean markets were influencing wheat futures as well. December CBOT wheat closed 1.75 cents higher at $6.43/bushel Tuesday, while December KCBT wheat lifted 0.5 cent to $6.9025, but December MGE futures sagged 2.25 cents to $6.995.

Cattle futures declined Tuesday. The latest wholesale data indicated mixed readings for beef cutout Monday afternoon, which probably disappointed bulls in the CME pit. That is, they have been hoping resurgent beef prices will spark a cash market advance during the days and weeks ahead. That may still happen, but the bulls are rather clearly less confident at this point. October cattle futures dropped 0.37 cents to 125.17 cents/pound around midsession Tuesday, while December sagged 0.57 to 128.65. Meanwhile, October feeder cattle plunged 1.62 cents to 157.87 cents/pound, and January dove 1.45 cents to 158.50.

Wholesale weakness undercut hog futures. Tight hog and pork supplies have been boosting prices across the complex lately, with Monday’s strong CME gains exemplifying the upward trend. However, traders were apparently surprised when large wholesale losses posted at noon yesterday were confirmed later in the day. That weakness probably depressed prices overnight and kept the pressure through the daily close. October hog futures fell 1.15 cents to 90.97 cents/pound Tuesday afternoon, while December tanked 0.95 cents to 87.52.



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