By: NATHAN STUEDLE
GRAIN:
September corn closed up 3 1/4 cents and December corn was up 2 1/4 cents. August soybeans closed down 6 1/2 cents and November soybeans were down 3 1/2 cents. September KC wheat closed up 9 1/4 cents, September Chicago wheat was up 4 cents, September Minneapolis wheat was up 12 cents.
Price action for row crops on Tuesday was directly influenced by Monday afternoon's Crop Progress report, which showed slightly lower corn ratings but surprisingly higher soybean ratings. As a result, corn traded modestly higher on Tuesday while soybean futures slipped following Monday's jump higher. Wheat futures remain well supported by the ongoing concerns in the Black Sea as well as a slide in U.S. spring wheat conditions in Monday's USDA update. In outside markets, a steady rise in Treasury yields has lifted the U.S. Dollar Index, typically a bearish indicator for crop futures. Meanwhile, crude oil is higher for the sixth time in the past seven sessions and trading at five-week highs.
LIVESTOCK:
The live cattle contracts were mixed heading into Tuesday's close, as the nearby contracts were hesitant, but the deferred contracts were fueled by trader support and the hope that market fundamentals may improve later this week. No cash cattle trade has developed yet and both bids and asking prices remain elusive at this point. It is assumed since packers were able to gain leverage in the market over the last couple of weeks, cash prices will be steady at absolute best this week when trade does develop.
To no one's surprise, with the live cattle complex trading mixed, so was the feeder cattle complex heading into Tuesday's closing bell. The market has plenty of room to trade higher before it will run into resistance pressure at the 40-day and 100-day moving averages.
The lean hog complex is continuing to trade higher into Tuesday's close as the market is pleasantly surprised by the $2.00 jump in pork cutouts and will always gladly take the extra support. The market's next resistance threshold is at $92.50 in the spot October contract.