Corn futures closed lower on Monday, marking the third consecutive day of losses. The selling continued in overnight trading, with traders once again citing poor export sales and anticipation of an upward revision to carryout stocks on this morning’s USDA Supply/Demand report. Futures funds who added significantly to the long side in the previous reporting week are seemingly liquidating those positions ahead of the report. March corn added to recent losses by slipping another 4 1/2 cents lower to $7.25 1/2. December 2013 was 2 3/4 cents lower at $6.34. After seeming destined to join corn and wheat at lower levels Monday, soybean futures rallied in response to the latest export inspections figure at 46.6 million bushels. Indeed, ideas that recent export sales will prompt a cut in 2012-13 bean carryout probably boosted prices in Monday night trading. The prospect of intermittent showers and persistent Argentine planting delays may have supported prices as well, although showers in Brazil aided the crop there. January soybeans rose 3 1/2 cents to $14.78 1/4, while the November 2013 contract inched 2 1/2 cents higher to $13.37/bushel. January meal was $2.30 higher at $447.40, but January soyoil slipped 13 points higher at 51.02. Wheat futures continued their early-week slide in overnight trading, with traders anticipating a rise in ending stockpiles for the 2012-13 crop year on the forthcoming WASDE report from the USDA. Traders have been very disappointed with the pace of recent sales, especially if previous USDA forecasts were to be met. The latest weekly export inspections continued that theme. Potential losses may be limited by the prospect of a poor U.S. winter wheat crop, since fall plantings are reportedly poorly rooted and unusually vulnerable to frigid weather. CBOT March wheat had fallen another 6 1/4 cents to at $8.42 1/2 in overnight trading, while KCBT March was down 3 at $9.00 1/4 and MGE March fell 1 to $9.27/bushel. beef strength exhibited on Monday probably limited the impact of Friday afternoon cash trading at lower than expected prices (around 124 cents/pound). News that Russian officials had not imposed a ban on U.S. beef and pork over the chemical ractopamine may also have undercut the market. Bulls will probably be hoping for a bounce later this week, especially if the wholesale market leads the way higher. Traders may have liquidated a few positions ahead of the WASDE report, but livestock futures generally don’t react very strongly to the supply/demand data unless the USDA makes substantial changes. February live cattle futures slipped ended the day 0.15 cents lower at 130.12 cents/pound, while the April future dipped 0.02 cents to 134.07 cents/pound. Traders seemingly suspected that the drop suffered last Thursday and Friday was overdone may have supported CME lean hog futures Monday, thereby opening the door to a modest rise. They may also have interpreted last Friday’s price action as a technical reversal signal. Those considerations still seemed in play Tuesday morning, since futures were mixed to higher despite negative price movements on the late afternoon wholesale and cash reports. February hogs declined 0.20 cents to 83.72, while the June contract rose 0.15 to 98.55 cents/pound. Cotton traders also seem to be moving cautiously ahead of the USDA WASDE report later this morning, with many likely exiting positions beforehand. That may at least partially explain the Monday test of recent highs and the subsequent drop to lower levels on the day. News that Indian cotton supplies to local markets fell about 12% during the mid-October to mid-December quarter may have boosted prices in overnight trading, but industry participants will almost surely disregard such developments in the wake of the WASDE release at 7:30 AM CST. March cotton rose 26 points to 73.66, while the December 2013 contract inched 3 points higher to 77.30 cents/pound.

Source