By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain markets were mixed Tuesday as traders returned from the three-day Labor Day weekend.
Wheat provided the strength in the complex, with renewed concerns surrounding Black Sea grain movement bringing geopolitical premium back into the market. Ongoing disruptions to export routes continue to raise questions about global wheat availability.
Corn was more subdued after its recent run to multi-year highs. Traders are balancing very strong export demand against expectations for a sizable U.S. crop as harvest approaches.
Soybeans were also relatively quiet, with export demand continuing to provide support. China has been an active buyer of new-crop U.S. beans, while traders are also watching late-season weather and its potential impact on pod fill.
Outside markets were a major factor Tuesday. Crude oil surged to six-week highs following attacks on Saudi energy facilities, with Brent settling near $97.70 a barrel.
Overall, wheat was the leader Tuesday, while corn and soybeans traded more cautiously as harvest and upcoming USDA numbers move into focus.
LIVESTOCK MARKET SUMMARY
Livestock futures were higher Tuesday, with cattle markets continuing their rebound following the recent sharp selloff.
Live cattle moved higher as traders returned from the holiday weekend, with historically tight cattle supplies continuing to provide fundamental support.
Feeder cattle were also higher, despite strength in grain prices. Supplies of available feeder cattle remain extremely tight, and that underlying scarcity continues to support the market after the tremendous volatility we've seen over the past several weeks.
The cattle complex is also digesting Tyson Foods' warning that the U.S. cattle shortage is severely squeezing its beef-processing margins — another indication of just how limited cattle supplies have become.
Lean hog futures joined the move higher, giving the livestock complex a broadly positive Tuesday session.
Outside markets remain a concern, however. Brent crude climbed to nearly $98 a barrel as Middle East fighting intensified, adding to inflation and transportation-cost concerns.
So the takeaway Tuesday is straightforward: livestock futures were higher, led by renewed strength in cattle as historically tight supplies continue to underpin the market.