By: NATHAN STUEDLE
GRAINS:
December corn closed up 2 3/4 cents and March corn was up 3 cents. November soybeans closed down 13 1/2 cents and January soybeans were down 13 cents. December KC wheat closed down 8 1/2 cents, December Chicago wheat was down 6 cents, December Minneapolis wheat was down 5 3/4 cents.
Ag markets began the new week, the new month, and new marketing year for corn and soybeans with a lower session, driven primarily by a sharp selloff in soybeans after last week's trade meetings in Washington between Chinese negotiator Li Chenggang and U.S. officials concluded with no deal (although this was always unlikely). There are plans to hold another round of talks prior to the tariff truce extensions cutoff in November. Meanwhile, wheat futures crashed Tuesday as well as world production forecasts for 2025 continue to rise. Outside markets Tuesday saw U.S. equities move firmly lower as September has a tendency to be a bearish month for stocks historically. Energy markets were higher with NYMEX crude oil futures trading among their highest price in just under a month.
LIVESTOCK:
Live cattle futures continued to march higher with moderate to active buying redeveloping Tuesday morning when traders returned to the complex following the long weekend and set course for September. October futures moved to new contract highs once again, with prices breaking through the $240 per cwt price threshold, only to give way by the closing bell to finish no better than mixed. The continued support in futures trade remains solid despite a pullback in beef values in the morning report. Traders still remain bullish on cattle long term, as there seems to be very little resistance in both wholesale and retail beef markets, which would significantly curb this market optimism at this point.
Feeder cattle futures continued to lead the livestock and cattle complex higher through the bulk of the session, with triple digits seen in spot September contracts at midday after a strong start of the week and month through the morning activity. Traders continue to focus on not only the current market direction, but the fact that cattle traders remain holding a strong long position in cattle contracts indicates that traders are looking for the bullish run across the cattle industry to continue gains seen through the entire feeder cattle complex. Support waned into the closing bell, with only the deferred contracts finishing in the green. The lack of buyer pressure in the cattle market in general, and specifically the feeder cattle futures, has markets pushing even higher with very little resistance currently seen.
Lean hog futures posted positive market shifts in nearby contracts Tuesday, although the momentum and intensity of active cattle market gains have still limited buyer support across the entire lean hog complex. December contracts continue to lead the hog market higher, as traders continue to bounce back from moderate pressure over the past few weeks. Hog Prices were unreported due to confidentiality on the Daily Direct Morning Hog report.