By: NATHAN STUEDLE
GRAINS:
July corn closed down 1 3/4 cents and December corn was down 2 1/4 cents. July soybeans closed up 1 1/4 cents and November soybeans were up 1/4 cent. July KC wheat closed down 15 1/4 cents, July Chicago wheat was down 10 3/4 cents and July Minneapolis wheat was down 24 3/4 cents.
Another week of mostly steady crop ratings from USDA kept the lid on price potential for Tuesday, while corn was primarily bearishly influenced from another double-digit lower session for wheat futures, with traders unconcerned over bullish weekly storylines such as intense heat across Europe over the next two weeks. Soybean futures held steady, supported by recent export sales to China but feeling no shortage of supply currently, with ample old crop reserves and decent conditions for the growing U.S. crop. Outside energy markets were again lower and heading for an eighth straight down day, barring a turnaround. Traffic through the Strait of Hormuz has slowly ramped up through June, and the U.S. lifting sanctions on Iranian oil exports has traders expecting supply relief in the coming weeks and months.
LIVESTOCK:
The live cattle complex traded mixed into Tuesday's noon hour as the market would love to continue with its brave upward climb, but before the nearby contracts will advance any further, traders want to see continued fundamental support. Luckily, midday boxed beef prices are higher, which is helping keep the deferred contracts trading strong, but the nearby contracts want see what's going to become of this week's fed cash cattle market, and they sent the complex to a fully lower state. No bids or asking prices are noted in the fed cash cattle market yet.
The feeder cattle complex is in the same boat as the live cattle complex as its nearby contracts are hesitant to trade higher, but at least the deferred contracts were trading stronger for much of the session. Luckily the demand in the countryside has remained red hot over the last week, and hopefully, even though the board is trading mixed, that level of support from buyers will remain strong.
The lean hog contracts traded mostly higher into Tuesday's close as the market has seemed to attract more trader interest. Unfortunately, today's support isn't multifaceted as fundamental support is lagging as midday pork cutout values are a tick lower. Do remember that this Thursday, the Quarterly Hogs and Pigs report is set to be released.