By: NATHAN STUEDLE
GRAINS:
July corn closed up 5 1/4 cents and December corn was up 2 cents. July soybeans closed up 1 3/4 cents and November soybeans were up 1/2 cents. July KC wheat closed down 10 1/4 cents, July Chicago wheat was down 7 1/2 cents, July Minneapolis wheat was down 9 1/4 cents.
Wheat futures broke another leg lower, erasing eight sessions worth of price gains over the past two as improved conditions in the U.S. and forecasted rain for dry world wheat growing regions have traders re-evaluating their recent buying spree. Meanwhile, corn and soybean futures found support Tuesday, with the former again trading among calendar year lows and enticing buyers. In outside markets, equities continue to hover among their highest levels in three months, as traders await further insight into the progress made in London trade talks between the U.S. and China, which are now in their second day.
LIVESTOCK:
The live cattle complex traded on a mixed basis as traders seem to be uncomfortable advancing the contracts any higher without seeing renewed fundamental support this week. Although one could point to the market's higher boxed beef prices as support, given the historical price point in which the market is trading at, traders need more support to justify trading the contracts any higher. Bids and asking prices are still elusive at this point and trade isn't expected to develop until later in the week.
The feeder cattle complex traded higher despite the fact that the live cattle contracts traded mildly lower for the bulk of Tuesday's session. For the most part, the feeder cattle complex has followed in the live cattle market's shadow step by step over the last couple weeks, but today, the market seemed to possess enough support to trade higher while the live cattle contract paused its own rally.
The lean hog complex traded skeptically as traders want to continue to support the market and push prices higher, but traders need to see furthered consistent, fundamental support before they'll fully dive in and do so. But with the belly's price improvement, the morning's carcass price was able to sprint higher.
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