By: NATHAN STUEDLE
GRAINS:
March corn closed up 2 3/4 cents and May corn was up 2 1/4 cents. March soybeans closed up 5 1/2 cents and May soybeans were up 4 3/4 cents. March KC wheat closed down 1/2 cents, March Chicago wheat was up 1 cent, March Minneapolis wheat was down 3 1/4 cents.
It was a generally positive session for ag markets Tuesday with soybean futures recovering from three consecutive lower sessions and building off bullish momentum which showed glimpses through Monday's rally off daily lows. Wheat markets, on the other hand, remain sluggish with bullish traders thus far lacking the confidence to extend the recent bounce beyond two-month highs which were hit last week. Corn was caught between the soybean rally and heavy wheat prices. Meanwhile, a recovery in energy prices following Monday's risk-off session provided a base of support Tuesday. In early afternoon Tuesday, it was reported that the U.S. had shot down an Iranian drone in the Persian Gulf, a swift ratcheting of tensions which had seemed to be cooling to begin the week, with nuclear negotiations set for Friday in Turkey. It is unclear at this point if those talks will move forward as planned.
LIVESTOCK:
The live cattle complex continued to move higher as traders have gained another level of confidence following last Friday's bullish Cattle Inventory report. The market is pressuring its technical barriers as this is currently the highest price point traded at since last October. As long as fundamental support continues to remain robust, traders will likely remain supportive and push the contracts higher. But it's undeniable traders will need to see continued fundamental support. Following last week's strong trade in the fed cash cattle market, there's been no new business develop yet and it's most likely trade will be delayed until Thursday or Friday of this week. It is assumed prices will be higher again this week as supplies of market-ready cattle remain thin. Boxed beef prices are higher: choice up $2.66 ($370.87) and select up $2.85 ($367.76) with a movement of 56 loads (40.98 loads of choice, 3.08 loads of select, 4.94 loads of trim and 6.53 loads of ground beef).
With encouragement from last week's bullish Cattle Inventory report, the stronger trade in the fed cash cattle market last week, and the live cattle contracts trading higher, the feeder cattle complex traded higher thanks to these support factors. If the live cattle contracts happen to weaken, there's a strong chance the feeder cattle contracts will too.
The lean hog complex started moderately higher and went into the closing bell the same way the day started. Hog prices average $86.27 on the Daily Direct Morning Hog Report, with prices ranging from $80.00 to $88.00 on 2,461 head and a five-day rolling average of $85.12. Pork cutouts total 191.65 loads with 176.52 loads of pork cuts and 15.13 loads of trim. Pork cutout values: up $0.35, $96.05.