By: NATHAN STUEDLE
GRAINS:
July corn closed down 3 1/4 cents and December corn was up 3 3/4 cents. July soybeans closed up 4 1/4 cents and November soybeans were up 7 1/4 cents. July KC wheat closed up 11 3/4 cents, July Chicago wheat was up 12 1/2 cents, July Minneapolis wheat was up 8 cents.
U.S. ag futures were mostly higher for Tuesday on a combination of technical buying as well as a mixed Crop Progress report from USDA on Monday afternoon in conjunction with the threat of severe weather for western Kansas. Meanwhile, in outside markets, oil prices again firmed on Tuesday after Iran's reported desire to restart talks with Israel seemingly went nowhere. Two oil tankers were also reported to have struck one another in the Gulf of Oman early Tuesday, as the Wall Street Journal reported that navigational systems are being interfered with as a result of military action in the region. Stocks were on edge Tuesday as President Trump left the G-7 Summit in Canada early but denied the early exit was to work on a Middle East ceasefire.
LIVESTOCK:
The live cattle complex was faced with technical pushback again today as traders' lingering concern that the market could indeed be overbought hasn't subsided. But the real question that the week has yet to answer is: If the market is indeed able to receive fundamental support in the form of stronger cash prices and continued stronger boxed beef prices, will it make a difference for the futures complex? Some folks are not certain that it will, as traders seem committed to siding with the bears in the market, but there's a chance that if fundamental support does develop that it will at least help hold the market closer to steady as opposed to letting it trade multiple dollars lower. Asking prices are noted at $238 plus in the South, but are still not established in the North.
Almost like clockwork right now, the feeder cattle complex also traded sharply lower as the market will not move against the direction of the live cattle complex in today's market environment. Although Friday's Cattle on Feed report is expected to be bullish in its findings, traders are numb to its effect right now as the only thing they're fixated on is the market's technical pressure.
Although the lean hog complex has seemed almost unable to have a poor day in the last two weeks, even the lean hog contracts were trading lower into Tuesday's close. Traders have relied heavily on the support of consumer demand and this morning it is worth nothing that pork cutout values are slightly lower.
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