Most ag markets held up surprisingly well Tuesday

Monday’s progress report weighed the corn market. The weekly USDA Crop Progress report raised the latest rating for the U.S. corn crop 1%, which made it the second-highest mid-August reading since 1994. The fact that traders were already anticipating a huge harvest may have limited the bearish reaction later in the day. September corn settled 4.0 cents lower at $3.56/bushel Tuesday, while December lost 2.5 to $3.65.

The soy complex turned mixed Tuesday. The soybean rating on the Crop Progress report slipped 1%, whereas traders were looking for an unchanged result. Nevertheless, the result was the best for mid-August since 1992, thereby implying outstanding fall yields. The old-crop reversal suffered Monday continued today, with soyoil prices seemingly bouncing in response to a potential slowdown in the crush. September soybean futures plummeted 50.25 cents to $10.755/bushel in late Tuesday trading, while November futures sagged 1.25 cents to $10.28. September soyoil rebounded 0.29 cents to 33.03 cents/pound, and September soymeal plunged $17.4 to $388.7/ton.

Talk of excessive rainfall may have supported wheat futures. The Crop Progress report seemed supportive of the wheat markets, but news from overseas depressed prices at midsession. Russia’s latest estimate of its 2014/15 exports easily topped industry expectations. Traders were also disappointed to see U.S. wheat shut out of an Egyptian tender. However, ideas that forecast rains will further delay the spring wheat harvest and potentially hurt quality seemed to offer late support. September CBOT wheat slipped just 1.0 cent to $5.415/bushel at Tuesday’s close, while September KC wheat stumbled 1.75 cents to $6.21/bushel, and September MWE wheat declined 4.25 to $6.1275.

Cattle futures barely sustained their Monday advance. Last Friday’s late cash strength sparked a response in CME futures yesterday. Prices apparently dipped on beef weakness overnight, but turned higher around midsession. However, the close was not very impressive. October live cattle futures ended Tuesday just 0.10 cents higher at 148.25 cents/pound Tuesday, while December futures gained 0.25 to 151.25. Meanwhile, September feeder futures rallied 0.92 cents to 214.20 and November futures advanced 0.57 to 210.82.

Hog traders seemingly expect a late-summer reversal. Monday’s late reports discouraged hog traders since both cash and wholesale values had apparently resumed their recent drop. Nevertheless, futures rallied strongly today, which probably reflected trader expectations for a big late-summer rebound. October hogs jumped 1.65 cents to 95.10 cents/pound in late Tuesday trading, while December leapt 1.70 to 89.70.