By: NATHAN STUEDLE
GRAINS:
September corn closed up 6 3/4 cents and December corn was up 6 1/2 cents. August soybeans closed up 3 1/2 cents and November soybeans were up 6 1/4 cents. September KC wheat closed down 2 3/4 cents, September Chicago wheat was up 2 1/2 cents, September Minneapolis wheat was down 3 3/4 cents.
Row-crop futures attempted to recover lost ground after Monday's energy-inspired rout with bullish confidence reassured by sizeable cuts to corn, soybean, and spring wheat conditions in the U.S. by USDA on Monday afternoon. However, weather forecasts have shifted to be somewhat less concerning in the 6- to 10-day outlook, featuring cooling Grain Belt temperatures and rainfall now in the forecast for this week from western Indiana to eastern Nebraska and South Dakota. Outside markets again leaned bearish with crude oil futures down sharply for a third straight day as Iran holds negotiations with Saudi Arabia and Oman regarding the future management of the Strait of Hormuz. Treasury yields have relaxed on easing inflation concerns, taking the U.S. Dollar Index lower as well, though the latter still hovers just below 2026 highs.
LIVESTOCK:
Following Monday's weaker close, traders seem to have shaken the worry and concern over the border reopening to Mexican cattle imports on Aug. 24 and live cattle contracts were back to rallying. Bids are on the table in Kansas at $228 live and in Nebraska at $228 live and $360 dressed. Following Monday's light trade, no more sales have been confirmed and asking prices remain elusive. But with the back-and-forth nature of the board this week it is anyone's guess when trade will fully get underway and what the week's weighted average trend will be.
The feeder cattle contracts were also rallying into Tuesday's close, again following the lead of the live cattle futures. I would like to mention, however, that the market is seeing the biggest daily gains in its nearby contracts (up $3.00 to $6.00 higher) while the deferred contracts faded into the red at the closing bell. This is likely due to the fact that when increased supplies do come from Mexico, it will impact the later months.
With the help of strong consumer demand, the lean hog contracts were rallying into Tuesday's close. The uptick of recent consumer demand has been the driving force allowing the lean hog contracts to trade higher in recent weeks. As long as that support remains steady, the contracts will likely continue to move higher.