Ag markets turned mostly lower in early Tuesday trade

Corn futures are following soybeans lower Tuesday morning. The weekly USDA Crop Progress report indicated a 2% drop in good-to-excellent ratings for U.S. corn, which probably exceeded expectations. However, given the gains posted Monday and the surprisingly good soy result, corn futures followed the soy complex lower. September corn slid 3.75 cents to $3.55/bushel late Tuesday morning, while December lost 3.75 cents to $3.655.

Soybeans are leading the crop markets downward. CBOT traders expected the Crop Progress report to indicate a 1% drop in the good-to-excellent categories on yesterday’s report, but it stated that result as being unchanged at 71%. That 10-year high for late July weighed on the soy complex. September soybean futures fell 16.0 cents to $10.7925/bushel around midsession Tuesday, while November futures dropped 16.0 cents to $10.635. September soyoil tumbled 0.56 cents to 35.56 cents/pound and September soymeal slumped $4.1 to $356.7/ton.

The Crop Progress report is also weighing on wheat values. The USDA indicated spring wheat conditions were unchanged at relatively high levels last week, while the winter wheat harvest is close to wrapping up. The data didn’t seem particularly negative for the golden grain markets, but they proved unable to overcome the downdraft created by sliding bean and corn quotes. September CBOT wheat dipped 1.0 cent to $5.43/bushel shortly before lunchtime Tuesday, while September KC wheat sagged 3.0 cents to $6.355/bushel, and September MWE wheat slipped 2.0 to $6.215.

Cattle futures set back from early Tuesday highs. Cattle futures rallied Monday night despite Monday’s surprising weakness and flat-to-mixed wholesale quotes. However, bulls could sustain only a portion of the advance, possibly due to seasonal pessimism. October live cattle skidded 0.15 cents to 156.07 cents/pound in late Tuesday morning action, while December advanced 0.20 cents to 156.52. Meanwhile, September feeder futures surged 0.60 cents to 221.27 cents/pound, and November feeders rallied 0.45 cents to 218.97.

Hog futures resumed their breakdown this morning. Although wholesale prices firmed Monday, traders apparently expect a resumption of the general downward move in cash hog and pork values. October hog futures dove 1.12 cents to 102.50 cents/pound early Tuesday morning, while December stumbled 0.47 cents to 94.87.