By: NATHAN STUEDLE
GRAINS:
December corn closed down 3 1/4 cents at $4.20 3/4 and March corn was down 3 1/2 cents at $4.03 1/4. November soybeans closed down 7 1/2 cents at $10.33 3/4 and January soybeans were down 6 3/4 cents at $10.53 1/2. December KC wheat closed down 6 1/2 cents at $5.21 3/4, September Chicago wheat was down 4 1/4 cents at $4.98 1/2 and December Minneapolis wheat was up 0.01 cents at $5.87.
It was generally a bright red day on ag commodity quote boards as all three wheat markets again printed new lows; corn, soybeans and bean oil fell, with the latter two down hard. Steady crop ratings in corn and soy and the ongoing crop tour reflecting the record yield potential that USDA saw, along with the accelerating southern harvests, combined to weigh on prices throughout the session.
LIVESTOCK:
Tuesday presented itself as another opportunity to rally in the live cattle complex, and traders didn't let the chance to again push the contracts higher slip by.It's obviously helping that boxed beef prices continue to trek higher despite the already incredibly high price point at which the market is trading, but resistance pressure could at any time pressure the live cattle contracts and cause traders some anxiety. In the spot October contract, resistance pressure looms around $232, and the contract was just roughly $0.50 away from that threshold for the bulk of the session. Asking prices are noted in the South at $240 plus, but are still not established in the North.
The feeder cattle complex continues to flex its power and strength, as currently, many of the nearby contracts have already reached new contract highs for the day. More than anything, the surge in the feeder cattle complex seems to be stemming from the fact that demand in the countryside remains utterly incredible, and that the live cattle complex is seeing plenty of support, which all bodes well with traders.
Following yesterday's higher close in the lean hog complex, the market seemed to question its move, trying to determine if it has enough support to justify the move made yesterday and finished modestly lower. The biggest deterrent to the morning's carcass price was the loin's $2.24 decline.