By: NATHAN STUEDLE
GRAINS:
May corn closed up 2 cents and July corn was up 3/4 cent. May soybeans closed up 11 1/4 cents and July soybeans were up 11 cents. May KC wheat closed up 9 1/4 cents, May Chicago wheat was up 9 1/4 cents, May Minneapolis wheat was up 6 1/2 cents.
Soybean futures posted double-digit gains on Tuesday following the release of the 2026 Prospective Plantings report, as well as the March quarterly Grain Stocks release. Both reports were more or less in line with trader expectations, though the soybean acreage estimate was lower than the average trade estimate as the shift away from corn was forecasted to not be as drastic as many were thinking. Meanwhile, wheat futures moved higher as well after another round of falling winter wheat crop ratings to start the week, as well as what is expected to be the lowest area planted to wheat in the U.S. since 1919. Energy markets were mixed to lower on Tuesday after President Trump reportedly expressed willingness to end U.S. military action in the Middle East without a forceful reopening of the Strait of Hormuz. Equities traded higher on the notion the conflict may be winding down, but the volatility in energy prices is likely to continue until the trade outlook through the Persian Gulf can be assessed with a higher degree of certainty.
LIVESTOCK:
Live cattle futures continued to move higher with trade gaining on technical support as nearby contracts near their contract highs. The ability to continue to push boxed beef prices higher as they near $400 per cwt was adding even more momentum to the live cattle complex. The combination of already tight supplies and potential cow losses due to Nebraska fires and feed shortages due to drought conditions could add more momentum to the market in the coming days and weeks. Cash cattle markets are still quiet with a very slow start to the day in cash cattle country, with bids and asking prices not established. Significant trade volume will likely be delayed until Wednesday or more likely later in the week.
Feeder cattle futures surged higher, with April through August futures posting gains $3 to $5 per cwt at the session end. This continued momentum in all cattle markets is sparking additional fundamental and technical buying through the entire complex. It is expected that additional market support will be seen as traders look to end the month of March and first quarter on a positive note.
Lean hog futures are the one area of livestock trade that was not posting active, aggressive gains Tuesday. Spot April contracts were lightly traded and holding single-digit losses, while most of the focus is on the June contracts due to overall limited open interest in the May lean hog contracts. Once April contracts expire, the majority of trade will then be focused on June contracts, which are currently trading $14 per cwt above the April market. This could help to bring about some additional cash market support, but the overall outlook in the lean hog complex remains cautious at best, given current pork demand, while supplies of market-ready or near market-ready hogs remain readily available.