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Evening markets: 'turnaround Tuesday' hurts crops

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Motoring Monday gave way to “turnaround Tuesday” as profit-takers stepped in to drag farm commodities off multi-month highs.

Grains, palm oil, soybeans, orange juice, coffee – all lost some of the ground made on the back of a weaker dollar and an inflow of fund money.

“Frequently, when the market makes a big move on Monday, it gives back part of the move on Tuesday, the "turn-a-round Tuesday" syndrome,” Vic Lespinasse, at, said.

“Many traders, myself included, think we overdid it to the upside yesterday.”

Hogs go limit down

Garry Booth, a trader at MF Global Australia, told Reuters, the news agency: “It is a little bit of profit-taking after a very strong close

Yet even commodities which have performed poorly of late, such as Chicago hogs, were dragged lower, despite further losses in the dollar, which dropped to a new 2009 against a basket of major currencies.

Indeed, both June and July hogs were down the daily limit of 3.0 cents at 17:30 GMT. The June contract stood at 59.75 cents a pound and July hogs at 62.15 cents a pound.

Falling pork prices, reports of weaker exports and the prospect of herd culls were blamed for the decline.

Wheat falls worldwide

Chicago wheat, one of the strongest commodities of late, was among the worst affected, standing at $6.62 ½ a bushel, 1.8% below its eight-month closing high reached on Monday.

The pattern was repeated in Europe, where London wheat for August closed down a whopping £4.00 at £120.00 a tonne. New crop contracts were not quite so soft, with November wheat losing £1.75 to £132.75 a tonne.

In Paris, August wheat ended E2.00 lower at E153.00 a tonne, a fall reflected in new crop contracts.

Chicago corn did a better of sticking hear its eight-month closing high, losing 2.5 cents to $4.43 ¼ a bushel, with new crop contracts relatively firm. Analysts at Rabobank have rated corn the best investment among grains because of a potential supply squeeze.

July soybeans, however, were in danger of falling back below the hard-won $12 a bushel mark, standing 17.5 cents down at $12.01 a bushel.

New crop contracts, which had fewer gains to lose, lost less. March 2010, for instance, shed 6.5 cents to $10.75 ½ a bushel.

Cocoa stays sweet

Among softs, New York juice for July ended 1.05 cent down at 93.20 a pound – hurricane or no hurricane. Juice has been boosted by concerns for the forthcoming storm season.

Coffee for July eased 0.35 cents to 141.90 cents a pound, while sugar slipped 0.26 cents to 15.59 cents a pound.

Cocoa bucked the trend, rising $32 to $2,699 a tonne in New York for the September contract and £14 to £1,701 a tonne in London.

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