By: NATHAN STUEDLE
GRAINS:
September corn closed down 4 1/2 cents and December corn was down 3 cents. August soybeans closed down 7 cents and November soybeans were down 2 cents. September KC wheat closed down 7 1/2 cents, September Chicago wheat was down 8 3/4 cents, September Minneapolis wheat was down 4 cents.
Prices slipped further Tuesday into 2025 lows and in some instances contract lows as another round of mixed crop ratings from USDA on Monday gave bearish traders little incentive to change their current market bias. Market news for Tuesday was slim, but it was reported in the early afternoon that U.S. and Chinese officials had agreed in principle to extend the trade truce which had been set to expire on Aug. 12, with later reports indicating that President Trump would give final approval on Wednesday. Meanwhile, Commerce Secretary Lutnick said Tuesday that Friday's tariff deadline for other countries is a firm cutoff before reciprocal tariffs go back into place. Meanwhile, the U.S. dollar has surged through the first two days of the week to its highest level in over a month on the weekend trade deal with the European Union. Lastly, investors and traders alike will tune in Wednesday for the conclusion of the July FOMC meeting in which the Fed is widely expected to hold interest rates despite growing tension between the Trump Administration and Fed Chair Jerome Powell.
LIVESTOCK:
Although traders were cautious at the day's initial start, the live cattle complex got back to trading higher after shaking the morning's initial jitters. Today's slight uptick, although it still is less than a dollar's advancement, is enough of a push to lead many of the nearby contracts to new contract highs yet again. No business has developed yet in the fed cash cattle market, and it isn't expected to any time soon, as feedlot managers and packers are likely to go round again this week as both parties want starkly different outcomes for the market. Asking prices are noted in the South at $235 plus, but are still not established yet in the North.
Per the norm here lately, the feeder cattle complex was again rocking and rolling into the day's closing bell as the sky truly remains the limit for the feeder cattle complex right now. Like the live cattle complex, today's advance scores new all-time highs in most of the nearby contracts once again. And regarding demand in the countryside, buyers remain so active in the market that Monday's CME feeder cattle index closed at $329.93.
With cash prices and pork cutouts values lower, it doesn't surprise many that the lean hog complex traded lower. The weakness in the market's fundamentals, mixed with the continued pressure being seen in the futures complex, has gravely affected the complex today as the contracts were all trading $1.00 to $2.00 lower.