Corn futures closed 4 to 5 cents lower on Tuesday. Prices traded the majority of the session 1 to 5 cents below unchanged. Futures were pressured by profit taking and long liquidation after recent weeks of record high prices. As news concerning the drought and yield reductions becomes old news, the trade is now awaiting fresh information to provide a sense of direction in the market.
Soybean futures closed 2 to 4 cents higher on Tuesday. Soybean futures bucked early morning pressure and rallied to a higher closed on solid demand for U.S. soybeans. Early weakness in the market was a result of profit taking and forecasts for rains the latter portion of the week. However, global demand for soybeans helped to underpin market prices. Today, USDA reported another significant export sale of soybeans to China totaling 110,000 tonnes for delivery
Wheat futures are trading 2 to 7 cents lower on Tuesday. Today’s market rally was short lived as wheat prices turned lower shortly after midsession. Wheat futures did lead the grain complex earlier today strengthened by weakness in the dollar index but late week forecasts for rain across the winter wheat belt and sluggish demand for U.S. wheat pulled prices lower. September wheat at CBOT close down 7 ¼ cents at $8.54 ¾; KCBT closed down 5 ½ cents at $8.68; and MGE closed down 2 ¾ cents at $9.10.
Live cattle futures closed higher on Tuesday. Market prices were supported by weakness in the grain complex and short covering. With corn and soybean futures trading well off of recent highs, renewed buying interest in the market picked up. Prices garnered additional strength as midday beef prices jumped $1.24 for choice cuts and 48 cents for select cuts. Cash trade is likely to remain undeveloped until the latter part of the week with preliminary asking prices of $122 in the South and $193 in the North. October closed 27 cents higher at $123.82 while December closed 2 cents higher at $127.27.
Lean hog futures closed lower on Tuesday. Not much movement in the hog market today. Prices traded in a narrow range most of the session before declining across the board. Traders anticipate weakness in the market to continue as long as pork slaughter and pork supply remain on the rise. However, today’s market woes are not entirely the result of bearish short term fundamentals. Profit taking after yesterday’s modest rally in prices added to overall weakness in the market. In regards to the cash market, prices remain lower as pork supplies flood the markets and packers lower bids on falling wholesale pork prices. October closed unchanged at $73.35 and December closed down 30 cents at $70.80.