By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain markets reversed early weakness and finished higher across the board Tuesday, with soybeans leading the way.
Corn recovered from losses of several cents early in the session. December corn finished about 3 cents higher, as buyers stepped back into the market following the morning selloff. Harvest is advancing, but disappointing early yield reports in some areas and USDA's reduced 178-and-a-half bushel national yield estimate continue to provide underlying support.
Soybeans posted the strongest gains. November beans finished more than 10 cents higher, building on Monday's rebound and putting additional distance between the contract and the 13-dollar level. Continued Chinese buying remains supportive, while traders are also watching harvest progress and the approaching Trump-Xi meeting for potential developments in soybean trade.
Wheat also turned around after being sharply lower early. Chicago and Kansas City contracts finished roughly 1 to 3 cents higher, despite easing Russia-Ukraine tensions weighing heavily on wheat during the overnight and early trade.
So Tuesday's grain story was a pretty impressive intraday reversal: corn, soybeans and wheat all shook off early losses to finish in positive territory.
LIVESTOCK MARKET SUMMARY
Livestock futures moved the opposite direction Tuesday as the cattle complex pulled back sharply following Monday's huge rally.
Live cattle finished mostly one to two dollars lower. October cattle were down around a dollar during the session as traders took some money off the table following the recent surge. The market is also beginning to look toward this week's cash cattle trade after futures moved dramatically higher over the past several sessions.
The larger correction came in feeder cattle. After posting gains of four to nearly six dollars Monday, feeders reversed course Tuesday and finished roughly three to four dollars lower in the nearby contracts.
Despite Tuesday's setback, cattle supplies remain historically tight and the cash market continues providing longer-term fundamental support. Monday's rally had been fueled by technical buying, stronger boxed beef values and expectations for firm cash business this week.