By: NATHAN STUEDLE
GRAINS:
May corn closed up 2 3/4 cents and July corn was up 1 1/2 cents. May soybeans closed down 4 1/4 cents and July soybeans were down 4 3/4 cents. May KC wheat closed up 19 1/2 cents, May Chicago wheat was up 9 3/4 cents, May Minneapolis wheat was up 13 1/2 cents.
Markets in general traded on renewed optimism that peace negotiations will resume later this week between the U.S. and Iran. Equities moved higher, with the NASDAQ posting a remarkable tenth consecutive higher session. Meanwhile, crude oil futures retreated with WTI prices on pace for their lowest close of April thus far. The energy influence on row crops has weakened through April, but Tuesday's drop did weigh on soybean oil futures with soybeans eventually fading from early gains as well. Corn futures were marginally higher (for old-crop futures) primarily on spillover strength from wheat markets, where falling condition ratings and a dry outlook for the remainder of April has 2026 production risk back at the forefront of trader concerns.
LIVESTOCK:
The live cattle complex seems to be looking beyond Monday's nervous state and has taken a bullish approach to Tuesday's trade as the market traded anywhere from $1.00 to $3.00 higher into Tuesday's close. But the real question remains: Why and what next? Is it because the higher equity markets are hopeful that tensions are easing in the Middle East and that has helped live cattle contracts regain some bullishness? Or are traders hopeful the market will see greater fundamental support later in the week? Either way, it will be vital for the market to see stable support because if it doesn't, this bullish run may be short-lived given the massive rally the market has already seen over the last two weeks. No cash cattle trade has developed yet.
Keeping with the same trend, the feeder cattle contracts were enjoying a fruitful rally into Tuesday's close. As long as the live cattle contracts continue to trend higher and lend extra technical support and buyer demand remains robust in the countryside, the feeder contracts will likely continue to trend higher, if not at least hold steady.
Simply unwilling to change its direction, the lean hog contracts were again trading lower. One would think the market would be pleased with the slight uptick in demand from consumers, but that isn't seeming to ease the technical pressure the market continues to endure.