Ag markets firmed Tuesday morning

Good harvest conditions continued depressing corn prices. The weekly Crop Progress report didn’t seem to affect corn futures overnight. Indeed, prices are still sliding in apparent anticipation of a surge in harvesting, since weather forecasts point to warm, dry weather over the short run. December corn futures dipped 3.25 cents to $3.27/bushel late Tuesday morning, while May skidded 3.25 to $3.48.

Vegoil gains seem to be supporting bean futures. The Crop Progress report indicated an historically high condition rating for beans, but it did fall short of industry expectations. That news, along with overnight palm gains in Asia, and spillover strength soyoil prices appeared to support the bean market. Meal futures are struggling. November soybean futures rallied 1.25 cents to $9.395/bushel just before lunchtime Tuesday, while October soyoil bounced 0.49 cents to 32.49 cents/pound, and October soymeal slid $2.3 to $316.1/ton.

Wheat markets are following corn lower. The crop condition report yielded little surprising, which seemingly left wheat futures open to the bearish influence of the corn market. Ultimately, the glutted global situation is apparently exerting persistent pressure upon relatively high domestic wheat prices. December CBOT wheat slipped 1.0 cents at $4.7575/bushel in midday Tuesday trading, while December KC wheat rose 1.25 cents to $5.615/bushel, and December MWE wheat lost 1.0 to $5.3575.

Cattle futures are bucking bearish sentiment. Cash cattle prices declined late last week, thereby sending a negative signal to CME traders. When combined with recent wholesale price slippage, this makes Chicago traders think they’ll see more of the same through late September. Nevertheless, nearby futures inched upward this morning. October live cattle futures crept up 0.10 cents to 155.60 cents/pound around midsession Tuesday, while December futures added 0.15 to 158.80. In contrast, October feeder futures jumped 1.10 cents to 230.37 cents/pound, and January feeders surged 0.80 to 222.55.

Bulls are again dominating hog market action. Pork prices rose significantly again Monday, but cash prices were less supportive. That likely sparked overnight selling, but bulls brought the Chicago market back this morning. They clearly expect much more of the same. October hogs climbed 0.65 cents to 107.95 cents/pound at midsession Tuesday, while December inched 0.05 to 95.75.