Corn futures settled 9 to 26 cents higher on Tuesday. Weather is the driving force behind this week’s corn market. New crop contracts continued to see support from dry weather forecasts across the U.S. Midwest over the next 7 to 10 days. The market was underpinned by yesterday’s bullish crop progress report. The report indicated that corn crop conditions had deteriorated from the previous week due to crop stress. The good to excellent condition rating for the new crop decreased 3 percentage points to 63 percent.
Soybean futures settled 42 to 48 cents higher on Tuesday. Soybeans ended the day on a high note, posting gains as high as 52 cents during trading. Soybean prices soared on renewed demand and weather concerns. Old crop contracts were supported by reported exports sales of 140,000 tonnes of soybeans to an unknown destination for 2011/12 delivery. Weather forecasts for increasing temps across key production regions propped up new crop prices. Yesterday’s crop progress report indicated a 4 percentage point decline in soybeans’ good to excellent crop condition rating.
Wheat futures settled 12 to 22 cents higher on Tuesday. Wheat prices were pulled higher by spillover buying in the corn and soybean markets. Today’s lower dollar index was friendly for market prices. Adverse weather across the Atlantic in parts of Russia, the Ukraine and China encouraged today’s market gains. News that Russia reduced their 2012/13 wheat crop by 3 mmt to 50 mmt supported the market and will likely increase demand for U.S. wheat.
Cattle futures closed lower on Tuesday. The market ended the day lower, despite the lower dollar index and higher outside markets. Initially, the market was called to open lower on profit taking. But, concerns that beef demand is declining appears to be the dominant factor weighing on market prices. Rising prices in the grain markets also pushed prices lower. Boxed beef prices were reported higher at midday, but had a minimal affect on cattle futures.
Lean hog futures closed mixed on Tuesday. Hog futures traded choppy most of the session today. Nearby contracts were pressured by profit taking and higher prices in the grain complex. On the other hand, market prices were supported by strength in the cash market and higher wholesale pork prices. Cash prices remain firm as ready supplies of market hogs dwindle. Today’s hog slaughter was reported as 2,000 head lower than last week.