By: NATHAN STUEDLE
GRAINS:
May corn closed up 3/4 cents and July corn was up 1 1/4 cents. May soybeans closed up 6 1/2 cents and July soybeans were up 6 1/4 cents. May KC wheat closed up 3 1/2 cents, May Chicago wheat was down 3 1/4 cents, May Minneapolis wheat was up 3 1/4 cents.
Row crop futures raced to a strong start following Monday evening's open, bullishly influenced by another 5-6% move in crude oil futures as the U.S. and Israel-Iran war rages on. However, as was the case on Monday, the U.S. Dollar strengthened relative to other currencies, hitting the highest mark since late November before fading slightly through Tuesday's trade. Moreso, soybeans and soybean oil remain well overbought from a technical standpoint, and rally attempts beyond November highs are understandably being met with profit-taking speculative selling and likely producer hedging pressure as well. Still, despite finishing well below daily highs, futures appeared equally stubborn to move drastically lower than even, with several markets setting higher lows as compared to Monday's reversal session and ultimately closing with modest gains on Tuesday. Equity markets were a bearish flagship on Tuesday as well, with the Dow Jones Industrial Average down for a third consecutive session, although bouncing from what were almost three-month lows in early trade.
LIVESTOCK:
The live cattle complex got back to trading higher as traders seemed to have found some technical support throughout the day's trade. Today's slight uptick in price doesn't mean that the pressures (both external and internal) have merely disappeared, because they haven't, but rather instead that traders believe enough downside regression has been seen in the near term and that it's both acceptable and safe for the complex to trade mildly higher. No cash cattle trade has developed yet. Boxed beef prices are higher: choice up $6.60 ($387.94) and select up $1.53 ($379.74) with a movement of 54 loads (34.97 loads of choice, 4.66 loads of select, 3.63 loads of trim and 11.11 loads of ground beef).
And in keeping in unison, most of the feeder cattle complex followed the live cattle market's direction and was also trading slightly higher. The live cattle contracts were trading higher in a somewhat stable fashion, but the feeder cattle complex was much more sporadic about its trade this morning, bouncing back and forth throughout the vast majority of the entire session.
And without the support of stronger pork demand, the lean hog complex was trading mixed to lower into Tuesday's closing bell. And at this point, a sideways lower trend is expected to continue in the lean hog complex until fundamental support improves.