By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
May corn closed down 3 3/4 cents and December corn was up 2 1/4 cents. May soybeans closed down 5 3/4 cents and November soybeans were up 1 1/4 cents. May KC wheat closed down 2 1/4 cents, May Chicago wheat was down 5 1/2 cents, May Minneapolis wheat was down 3 1/2 cents.
U.S. grain markets were pressured again Tuesday by profit-taking spurred on by friendly weather outlooks over the next two weeks, particularly for Brazilian corn pollination, but also for western winter wheat growing areas in the U.S., although the added precipitation in the eastern grain belt may ultimately prove problematic. At least part of the pressure to begin this week is likely natural technically induced selling following what was a tremendous rally across the corn and soybean markets last week. In outside markets, stock indices are cautiously higher through the week thus far, as although tensions between the U.S. and China remain high, there has been at least a momentary ceasefire in trade war escalation over the past couple of days. Meanwhile, the U.S. dollar is firmer Tuesday, finding support at levels below 100 on the Index. This may explain some of the weakness in the commodity markets for Tuesday as well.
LIVESTOCK:
The live cattle complex continued to trade higher as the market continues to feel well supported by ample trader interest, strong trade throughout the equity markets and day-by-day the continued feeling that some of the pressure from the announcement of tariffs is sitting on the backburner now. It is interesting to note that the spot June contract is trading back above the market's 40-day moving average, which again, will continue to be a threshold to monitor. Still no developments have surfaced in the fed cash cattle market, but some early bids could surface as early as this afternoon due to the holiday-shortened week.
The feeder cattle complex is continued to trade higher, not fearful of filling in the gap that was created when tariffs were brought to the forefront of everyone's mind a little over a week ago. Demand has seemed to improve again this week for feeder cattle in the countryside as buyers are pleased to see the futures complex again finding ease in the marketplace.
The lean hog complex traded mostly steady, minimal loss in the July contract, the balance of the board in the green, a bit higher in some of the deferred months. Traders seem to be holding steady in the spot and nearby contracts, as pork cutout values were a little lower this morning. And as some resistance pressure is being felt in the June lean hog contract, as traders near the point in which prices fell upon the tariff announcement. If demand happens to prevail later this week at the meat counter, then there's a chance that traders may deem enough support in the market to justify facing resistance pressure.
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