Ag markets moved mostly higher again Tuesday morning

Slow harvesting may be boosting corn and soybean futures. Monday’s weekly Crop Progress report showed both the corn and soybean harvest are lagging well behind normal. Moreover, with Iowa wet and rain forecast for much of the Midwest in the short run, the slow harvest may reduce the size and quality of the crop. December corn futures surged 6.5 cents to $3.39/bushel late Tuesday morning, while May climbed 7.0 to $3.6075.

The soy complex also rebounded from Monday night lows. The soy complex set back from Monday’s late highs last night, but is building upon them again this morning. As in the corn pit, talk of slow harvest progress and potential damage resulting from that appears to be spurring fresh buying today. November soybean futures rallied 7.0 cents to $9.4925/bushel around midsession Tuesday, but December soyoil slid 0.15 cents to 33.30 cents/pound, while December soymeal bounced $6.4 to $315.3/ton.

The wheat markets are leading the crop markets higher. Little news concerning wheat has emerged so far this week, but export prospects have seemingly improved, especially after Monday’s U.S. dollar drop. Talk of tighter Russian, Canadian and Australian situations seemed to spark buying, with heavily short trading funds likely covering positions as well. December CBOT wheat jumped 15.0 cents to $t $5.065/bushel in late Tuesday morning action, while December KC wheat vaulted 15.75 cents to $5.9125/bushel, and December MWE wheat leapt 17.0 to $5.6875.

Resurgent beef prices are boosting cattle futures. Last Friday’s modest rise in cattle futures probably spurred CME buying Monday, but the wholesale market may have been the real driver of that advance as well as the follow-through strength being experienced today. December live cattle futures lifted 0.80 cents to 167.10 cents/pound shortly before lunchtime Tuesday, while April futures added 0.75 to 165.82. Meanwhile, November feeder futures soared 1.82 cents to 242.10 cents/pound and January feeders surged 1.42 to 235.55.

Short-term optimism is apparently powering CME hog gains as well. Hog futures are rallying in response to persistent pork strength, as well as a surprising bounce likely coming in the CME lean hog index tomorrow. Discounts built into futures give them room to rise. December hogs ran up 0.72 cents to 96.60 cents/pound late Tuesday morning, while April gained 0.25 to 93.25.