Pressure on Wheat futures mounted into the close on Tuesday. Chicago Wheat closed 0.145 to 0.1675 lower; Kansas City ended 0.16 to 0.20 lower; and Minneapolis ended with losses of 0.1125 to 0.145. Futures were little changed in after-hours trade. Futures faced pressure throughout the day amid increasing harvest activity and generally favorable results in Kansas.

July Corn futures settled 0.005 lower, while the rest of the market was 0.115 to 0.16 lower. Aside from July Corn, most contracts ended on or near session lows. Futures mildly eased losses in after-hours trade. Funds sold an estimated 7,000 contracts, 35-M bu of Corn on the day. USDA surprised traders by keeping crop conditions ratings unchanged Monday afternoon.

Soybean futures favored a firmer tone throughout the day on supply concerns, with nearby's leading gains. Futures closed 0.055 to 0.1275 higher. Jul Soybean extended gains in after-hours trade while most other contracts trimmed gains slightly. Traders were reminded of the disappointing South American crop this morning when Conab trimmed its Brazilian Soybean crop estimate to 66.37-M metric tons and lowered its export forecast.

Lean Hog futures closed 0.125 to 0.525 higher in Y 2012 contracts, with the exception of the Jun contract, which finished 0.10 lower. Futures posted a high-range close. Northside potential for Jun Hogs was limited as the contract holds a 5.50-+ premium to the cash index, which is projected + 0.77 to stand at 85.52 Wednesday.

Live Cattle futures were choppy for much of the session, but faded late to close 0.25 to 0.775 lower, which was on session lows for most contracts. Cattle traders remain concerned with the global economic picture and the impact that may have on Beef demand, which weighed on futures late. That's overshadowing strength in the boxed Beef market and keeping traders comfortable with the discount futures hold to the cash index.

Brazil new-crop Soybean sales way ahead

Brazilian Soybean producers have begun selling the 2012/13 crop earlier than ever before with 28% of next season's output already sold, four months before planting starts, local grains analysts Celeres said Monday.
Strong Soybean prices and the weak real against the USD have induced local growers to lock in forward sales of the current and future crop at record levels, Celeres said.

Economist Shayne Heffernan of Market Outlook.

Palm Oil rebounds on hopes for Eurozone

Malaysian Palm Oil futures rebounded, tracking a recovery in overseas markets as investors looked to policymakers for new action to tackle the Eurozone's debt crisis. The market is a bit stronger today, basically on short covering and retracement after the previous day's sharp fall, said a trader with a foreign commodities brokerage in Malaysia.

China, Pork price stabilizes

China's Pork prices are gradually stabilizing after seeing continuous declines over the past several months, according to statistics from a price monitoring system launched by the Xinhua News Agency.

Pork prices have seen a slower drop since mid-May and are showing signs of steadying, with a slight increase of 0.1% Sunday compared with Saturday, the statistics showed.

Prices have fallen since the Spring Festival holiday, as farmers increased their pig stocks last year when prices rose, which drove up supplies and pushed prices down this year.

Price regulators announced last month that frozen Pork will be purchased from the market to increase national reserves, stop pork prices from plunging excessively and protect farmers against market volatility.

Pork prices were the main driver of last year's sky-high consumer price index (CPI) figure of 5.4%, which was well above the government's control target of 4% for the year.

Pork is the most widely consumed meat in China.

Indonesia raises Palm Oil exports to Russia

Indonesia wants to raise its exports of Palm Oil to Russia, as there is a large opportunity to tap the country's market, the local media reported Wednesday.

Deddy Saleh, director general for foreign trade at the Trade Ministry said that Indonesian officials had discussed the issue with their Russian counterparts during the recent APEC Food Security Ministerial Meeting in the Russian city of Kazan.

Currently Indonesia's exports of Palm Oil only tapped about 2% of the Russian Palm Oil market.

We keep looking for new markets, including Russia, which has market potential [for crude palm oil or CPO] up to 2-M tons, the director was quoted by the Jakarta Globe as saying.

Saleh said Indonesia might be able to export CPO directly, without the help of 3rd parties, by sea to Vladivostok, a Russian city that hosts the country's largest port on the Pacific Ocean. It would then be distributed via railway networks.

The executive director of the Indonesian Palm Oil Association (Gapki), Fadli Hasan, said Russia had been largely importing CPO from the Netherlands and Ukraine.

But the Palm Oil actually comes from Indonesia and Malaysia. And there remains a perception that CPO is not healthy, but I am sure demand for CPO will increase every year, especially because CPO prices are more competitive than those of other vegetable oils, he said.

Last year, Indonesia exported 323,800 tons of Palm Oil, worth US$357.8-M to Russia, approximately 2% of Indonesia's total CPO exports. The figure is higher than the 250,000 tons exported in Y 2010.

Indonesia produced 20-M tons of CPO in Y 2011, 70% of which was exported, mainly to China, India and Western Europe. The Indonesian government aims to boost this year's CPO production to 25-M tons and to increase its export volume to up to 18-M tons.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.