By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
July corn closed up 1 1/4 cents and December corn was down 1 3/4 cents. July soybeans closed down 4 1/4 cents and November soybeans were down 3 cents. July KC wheat closed up 5 1/4 cents, July Chicago wheat was up 4 3/4 cents, July Minneapolis wheat was up 1 cent.
Row crop and associated products markets were mixed for Tuesday, with wheat futures posting marginal gains after finding support amid multi-year lows. Monday's planting data from the USDA was the main source of bearish sentiment to the corn and soybean markets for Tuesday, as both crops remain ahead of schedule through the season thus far, with good planting weather still observed in the 6-10-day forecast. Outside markets were mixed, with a weaker U.S. dollar for the third straight session, and crude oil posting strong reversal action to trade almost $4 per barrel above Monday's low price. U.S. crop markets did not reflect the influence of energy markets on Tuesday that was seen on Monday, as traders for the moment are finding U.S. planting storylines as enough reason to keep the pressure on prices, although the stronger crude market may have offered some support to corn futures.
LIVESTOCK:
It was another prosperous day for the live cattle complex as the market again showed its fundamental strength as some light sales were reported in the Southern Plains at $218 to $220, which is steady to $2.00 higher than last week's weighted average. Given the market's norm here lately it's unusual to see cattle trading this early in the week; but packers continue to be short bought and to their advantage some feedlot managers were willing to let some cattle go to ensure they got their business done. At this point, no trade has developed in the North, but given the fact that sales have been reported in the South at steady/higher money, it's fully assumed that Northern cattle will trade in the same manner.
All the feeder cattle contracts aside from the May contract were able to close mildly higher Tuesday afternoon. And more than anything it seemed as although traders are more concerned about how the August feeder cattle contract is trading as opposed to the May feeder cattle contract as there's more cumulative volume in the August contract. But aside from the slight dip in the May contract, traders continue to seem focused on strong buyer demand in the countryside, along with the helpful support of strong market fundamentals (boxed beef prices and fed cash cattle trade) already developing in this week's market.
The lean hog complex merely drifted lower throughout the day as the market wasn't able to gain any footing throughout Tuesday. The cash hog complex may have seen a sizeable volume trade and prices may have been higher -- but that wasn't enough to offset some of the pressure endured technically and pork cutout values closed lower too. June lean hogs closed $1.42 lower at $97.57, July lean hogs closed $1.00 lower at $99.40 and August lean hogs closed $0.80 lower at $98.12. The biggest deterrent in the carcass price's ability to close higher was the $3.29 decline in the loin, although minor losses were seen throughout most of the cuts.
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