By: NATHAN STUEDLE
GRAINS:
May corn closed unchanged and July corn was down 1/4 cents. May soybeans closed up 1 3/4 cents and July soybeans were up 3 3/4 cents. May KC wheat closed down 9 3/4 cents, May Chicago wheat was down 7 1/2 cents, May Minneapolis wheat was down 9 3/4 cents.
After a week-opening pummeling which dropped nearby futures the daily limit, soybean futures were able to post a modest recovery on Tuesday. Corn futures traded both sides of even, caught between higher soybeans but lower wheat markets. Energy markets also moved mostly higher on Tuesday, as the war in the Middle East continues and traders weigh oil supply risks as the U.S. sets the reopening and policing of the Strait of Hormuz among the top objectives of the ongoing military operation. President Trump posted on Truth Social Tuesday that many NATO allies are reluctant to aid the U.S. in these efforts. Markets can be expected to remain on edge and potentially volatile as long as the conflict in the Middle East is ongoing.
LIVESTOCK:
Again, today the live cattle complex was rallying into Tuesday's close, as trader support helps drive the complex higher. Yes, midday boxed beef prices were higher, but aside from that, the market hasn't found much other fundamental support this week. It's fully expected that later this week when the fed cash cattle market does begin to trade, that prices will likely be lower given the reduction in throughput. No bids or asking prices have surfaced yet in the fed cash cattle complex, and it's fully assumed that trade will be delayed until later in the week. Trade could be potentially delayed until after Friday's Cattle on Feed report.
In keeping with perfect unison to the live cattle complex, the feeder cattle contracts were also trading higher. The market is comfortably trading between its 100- and 40-day moving averages, but as it gets closer to the resistance near the 40-day moving average, it may elect to chop sideways until greater fundamental support surfaces.
Meanwhile the lean hog complex was more or less chopping sideways as traders don't possess enough support to rally the complex, but thankfully, no more immediate downward pressure has been felt. If pork cutout demand could improve, that would likely help traders push the market slightly higher.