Corn futures closed 1 to 2 cents lower on Tuesday. Corn futures were very volatile today, trading up and down and side to side. Today’s market pressures were primarily a result of profit taking on record high prices and the moderate declines in the wheat market. Updated weather forecasts are more favorable the 2012/13 crop, slowing the deterioration process but most of damage is irreversible at this point. September closed 1 ¾ cents lower at $7.81 and December closed 2 ¼ cents lower at $7.90.
Soybean futures closed mixed on Tuesday. Choppy trade characterized the soybean market during the day session. Prices rebounded on renewed commercial interest but were pulled lower by profit taking and improved weather conditions for the upcoming week. Weather conditions are expected to be wetter and cooler, reviving a severely stressed bean crop. Long term supply/demand fundamentals remain intact and will support futures prices going forward, however volatility in the market is not expected to subside anytime soon. The September contract closed 1 ¼ cent higher at $16.24 while November closed down 1 ¼ cent at $15.99.
Wheat futures closed 9 to 17 cents lower on Tuesday. Wheat prices closed lower on weak demand for U.S. wheat coupled and investor long liquidation. Prices began to tumble at midday as news that Egypt purchased another round of wheat from countries in the Black Sea Region and never recovered. Eygypt is the world’s largest wheat buyer and purchased 120,000 tonnes of wheat from Russia and Ukraine on Tuesday after purchasing 120,000 tonnes from Russia last week. Instability in the other grain markets along with a higher dollar index weighed on futures as well. September wheat at CBOT closed 17 ¾ cents lower at $8.39; KCBT closed down 16 cents at $8.52, and MGE closed 9 ¾ cents lower at $9.01.
Live cattle futures closed mostly higher on Tuesday. Market prices were pushed higher today by significant jump in midday boxed beef prices and strong demand for beef products ahead of the Labor Day weekend. Choice cuts were up $2.32 at $189.21 and select cuts were $2.34 higher at $181.76. The cash market remained quiet today but traders are anticipating higher prices along with better movement the latter part of the week. October closed 52 cents higher at $126.90 while December closed unchanged at $128.97.
Lean hogs futures closed mostly lower on Tuesday. Hog futures closed mixed supported by spillover buying in the cattle complex but pressured by profit taking. October is currently underpinned by its discount to the lean hog index while deferred contracts are pressured by volatility in the corn market. Deferred contracts were also pressured by the long term demand and the costs associated with production in the wake of record high feed cost. October closed 37 cents higher at $77.45 while December closed down 12 cents at $74.85.