By: NATHAN STUEDLE
GRAINS:
July corn closed down 5 3/4 cents and December corn was down 4 cents. July soybeans closed down 11 1/4 cents and November soybeans were down 7 1/4 cents. July KC wheat closed down 4 1/2 cents, July Chicago wheat was down 13 1/4 cents, July Minneapolis wheat was down 3 cents.
It was an overall day of profit-taking across U.S. crop futures Tuesday with Monday afternoon's Crop Progress report offering few surprises to traders. Meanwhile, the U.S. government has downplayed Monday's Iranian attacks in the Strait of Hormuz, which reportedly included strikes against U.S. warships as well as U.A.E. oil infrastructure. The U.S. military successfully escorted two U.S. flagged vessels through the Strait of Hormuz on Monday as well, another factor contributing to lower energy futures on Tuesday with crude oil giving back roughly half of Monday's gains. Equity markets were higher on optimism that Tuesday's rhetoric may signal a resumption of ceasefire negotiations between the U.S. and Iran.
LIVESTOCK:
Following Monday's weaker close, the live cattle contracts were higher as traders seem slightly more willing to support the complex now that the weekend has passed and upon seeing continued boxed beef demand. Still no trade has developed in the fed cash cattle market and it's most likely the week's trade will be delayed until sometime after Wednesday. No bids or asking prices have surfaced at this point.
Once again, keeping in alignment with the live cattle complex, the feeder cattle contracts were trading sharply higher into Tuesday's close. Thankfully the market has regained most of the position lost on Monday. So, as long as the live cattle contracts keep trading higher, the market will likely maintain this momentum into midweek.
Could it be the slight uptick in pork demand? Or is it the positive momentum of the cattle complex that's spilled over and now helping the lean hog contracts trade higher too? Your guess is as good as mine, but higher trade is higher trade and after having lost substantial position in the last three trading days, the lean hog complex is grateful for any support it gets.