By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain markets finished sharply higher Tuesday, with all three major markets posting strong gains.
December corn closed up about 11 cents at $5.08 a bushel, ending near the session high. Short covering, bargain buying, a weaker U.S. dollar and slower-than-normal harvest progress all helped support corn. Iowa remains well behind normal on harvest, with recent heavy rains keeping combines out of fields longer than expected.
Soybeans were the strongest mover in the complex, with November futures up roughly 20 to 24 cents and moving back above the $13 mark. Support came from slower harvest progress, fresh export demand and strength tied to developments in Brazil. USDA also recently reported another soybean sale to an unknown destination.
Wheat also posted double-digit gains in parts of the complex. Black Sea supply concerns remain supportive, while slower U.S. winter wheat planting and stronger international demand are also helping the market. Ukrainian grain exports remain sharply below year-ago levels, adding another layer of support.
Overall, it was a strong risk-on day in the grain markets, with corn, soybeans and wheat all closing well above early-session expectations.
LIVESTOCK MARKET SUMMARY
Cattle futures exploded higher Tuesday, reversing Monday’s weakness in a big way.
Live cattle finished roughly 4 to 5 dollars higher, while feeder cattle surged around 8 to 9 dollars. The rally built throughout the session after cattle opened firm and buyers became increasingly aggressive. Tight cattle supplies remain the underlying bullish foundation, while Monday’s sharply higher boxed beef values helped reinforce ideas that beef demand is holding together despite historically high prices. Monday’s Choice cutout jumped more than 4 dollars to above $378.
Feeders posted the biggest move, with the combination of renewed cattle-market buying and speculative momentum overwhelming the negative influence of higher corn prices.
Cash cattle trade remains relatively quiet early in the week, leaving futures traders to anticipate how aggressively packers may need to bid later in the week.
Lean hogs were much quieter by comparison. Hog futures have been attempting to stabilize after recently reaching contract lows, with short covering providing some support, but the market continues to face concerns over cash hog demand and pork values.
The clear story Tuesday was cattle — a massive rebound that sent both live and feeder contracts sharply higher.