By: NATHAN STUEDLE
GRAINS:
September corn closed down 5 1/2 cents and December corn was down 6 1/2 cents. August soybeans closed down 10 1/4 cents and November soybeans were down 3 1/4 cents. September KC wheat closed down 5 cents, September Chicago wheat was down 3/4 cents, September Minneapolis wheat was down 7 1/2 cents.
Grain markets were lower again on Tuesday as traders are solely focused for the time being on good weather for the growing spring planted crops. It is also safe to say at this point that the crops are passing the "eye test" with USDA giving the corn crop its highest early July rating since 2018. In outside markets, it was a much quieter tone Tuesday compared to Monday as investors and traders seem to have been somewhat calmed by the extension of the tariff cutoff by the Trump administration to Aug. 1, but ongoing trade negotiations will be an important factor for the balance of July. For energy markets, crude oil is working towards a second session higher to start the week despite the announced OPEC+ production increase for August reported over the weekend. Unfortunately, for ag markets, the firmer energy prices did little to prop commodity prices, as currently, weather trade is trumping all.
LIVESTOCK:
The live cattle complex's momentum hasn't waned as the contracts traded even higher into Tuesday's closing bell. The spot August contract could begin to feel some resistance pressure as the market is nearing the all-time high made earlier in June. Thankfully, boxed beef prices were higher again this morning, which is adding another bullish gust to trader's already ambitious push. However, it's yet to be seen what fed cash cattle prices are going to do this week. Asking prices are noted at $226 plus in the South, and it has been noted that cattle in western Iowa are priced at $240, but no trade has developed just yet. And given that packers have supplies built up around them, it's likely that prices will be steady at best.
Up, up and away! The feeder cattle complex successfully reached new contract highs as the market is being flooded with support. Buyer demand remains ample in the countryside and thanks to the added technical support of traders willing to invest in the futures complex -- dare I say it's almost been easy for the market to trade higher?
The lean hog complex did not receive the same level of support that the cattle complex did, but with the wild price swings seen lately in pork cutouts, you can hardly blame traders for being cautious. If demand happens to stabilize, then there's a chance that the futures complex could establish some footing in the marketplace and that cash demand may improve.
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