By: NATHAN STUEDLE
GRAINS:
September corn closed down 5 1/2 cents and December corn was down 5 cents. September soybeans closed down 3 3/4 cents and November soybeans were down 3 3/4 cents. September KC wheat closed down 12 1/2 cents, September Chicago wheat was down 8 1/2 cents, September Minneapolis wheat was down 2 3/4 cents.
What bullish spark there was in the soybean market early Tuesday was quick to fade by midmorning as prices turned lower amid bearish influence from surrounding ag markets. Corn futures fell once again to new lows as there is just little bullish news to be found to break traders' focus on recent unveiling of a number of private yield estimates which are all coming in well above the USDA trendline forecast. For wheat markets, a fresh burst of harvest pressure sank winter wheat varieties Tuesday, as traders see little reason for concern regarding available wheat supplies in the immediate future. Outside markets for Tuesday also leaned negatively on ag interests, with crude oil markets still feeling the weight of heightened production from OPEC+. Meanwhile equities turned lower as well by midmorning, caught between growth prospects from an assumed impending interest rate cut in the next FOMC meeting in September and lingering uncertainty regarding the next step in the tariff/trade war.
LIVESTOCK:
The live cattle complex was off to a sporty rally throughout the day, as traders seem to be more confident in the market's fundamental footing than they were on Monday. There are a few asking prices now noted in the South at $238 to $240, but the North continues to remain quiet. It's unlikely that any cash cattle trade will develop until Thursday or Friday. The market still has some upward room to trade as the resistance plane sits at $230.
The feeder cattle complex had an aggressive rally for the day as all of the contracts traded $5.00 and more higher for the bulk of the session. More than anything, it seems as though traders have shaken the jitters they possessed on Monday and are now back to believing in the market's robust fundamental position. Feeder cattle demand in the countryside hasn't wavered whatsoever, and doesn't seem to care what the board is doing, as buyers know that supplies are thin and that that isn't going to change any time soon.
The lean hog complex continued to trade higher into Tuesday's closing bell as traders have found enough support in the marketplace to blow past the market's previous resistance at $91.00. It's difficult to say where traders are getting this extra momentum from, as we can't see what pork demand is doing because of packers' failure to submit data this morning, but the slight improvement in the cash market is surely helping.