By: NATHAN STUEDLE
GRAINS:
March corn closed down 1 3/4 cents and May corn was down 2 3/4 cents. March soybeans closed down 10 1/4 cents and May soybeans were down 9 3/4 cents. March KC wheat closed down 7 1/4 cents, March Chicago wheat was down 3/4 cents, March Minneapolis wheat was up 3/4 cents.
Row-crop futures traded mixed to lower Tuesday in fallout after Monday's much-more-bearish report than even the most already bearish traders and analysts expected. The question now becomes how quickly traders will choose to move past the USDA estimates and ahead to what will be a very busy first quarter of 2026 for further fundamental developments. Outside markets for Tuesday were mixed, with a higher U.S. dollar for the eleventh time in the past 13 sessions as Tuesday's CPI reading was steady at 2.7% year-over-year inflation. Energy prices were firm for the fourth straight session amid growing turmoil in Iran and President Trump renewing tariff threats against countries that trade with Iran. Equity markets were lower on profit-taking amid record highs for the Dow Jones Industrial Average and S&P 500.
LIVESTOCK:
The live cattle complex stepped higher into Tuesday's close as traders were pleased to see boxed beef prices stronger again today, and are feeling at ease knowing corn prices are projected to remain affordable through 2026 -- as evidenced by Monday's WASDE report. No substantial cash cattle trade has developed yet, and with the futures market trading slightly higher, there's a good chance trade will again be delayed until late in the week. No asking prices have been established either. Boxed beef prices are higher: choice up $0.91 ($358.02) and select up $0.99 ($359.04) with a movement of 93 loads (61.65 loads of choice, 4.78 loads of select, 18.96 loads of trim and 7.78 loads of ground beef).
With corn prices anticipated to remain affordable through 2026, the feeder cattle complex was sporting a noteworthy $4.00 to $5.00 rally through the bulk of Tuesday's session. Feed costs have remained in feeders' favor over the last year as overall it's been affordable, but with feeder cattle prices so high, buyers need that guarantee as their breakevens on these calves is risky and if feed prices were to grow more expensive, a lot of people could be in a tough position given how much they are simply paying for the calves and feeders they desire to feed out.
Following the slight technical downturn in which the lean hog complex has seen over the last three days, the market was again trading higher as traders are no longer up against immediate resistance pressure. It still remains a tough fundamental position for the marketplace as pork cutout values were again lower and as there hasn't been hardly any trade in the cash hog market -- meaning that today's slight uptick was solely a technical decision.