Corn futures closed 8 to 23 cents lower on Tuesday. Corn futures closed lower for the second consecutive day, trading limit down shortly after midday. Bearish factors for the market today were lower outside markets, the higher dollar index, and forecasts for much needed rainfall across the Midwest over the next 7 to 10 days. Doane corn and soybean economists are out on our annual 2012 Crop Tour across the Midwest. For up to date information, commentary, and photos of this year’s 2012/13 corn and soybean crop, please follow us at http://www.doane.com/crop-tour/ or DoageAg on twitter.
Soybean futures closed 52 to 56 cents lower on Tuesday. Significant selling pressure from noncommercial long liquidation pulled soybean prices lower another day. Soy futures traded limit down (70 cents) today as forecasters predict rain across the drought stricken Midwest and as the U.S. dollar rallied to a new high. Doane corn and soybean economists are out on our annual 2012 Crop Tour across the Midwest. For up to date information, commentary, and photos of this year’s 2012/13 corn and soybean crop, please follow us at http://www.doane.com/crop-tour/ or DoageAg on twitter.
Wheat futures closed 32 to 37 cents lower on Tuesday. The U.S. dollar index rallied to a new high today, placing downward pressure on wheat futures. Wheat prices traded their lowest of the day on outside market pressures and as corn and soybean prices traded limit down shortly after midday. The dynamics of the market are becoming more and more bullish as traders fear global wheat stocks to fall significantly short of global expectations. Currently, Kazakhstan wheat production is estimated to be 14.2 mmt lower than the previous year while Australia is expected to see a 33% decline in exportable wheat marketings. Unfortunately, the market was not trading fundamentals today.
Cattle futures closed mixed but mostly lower on Tuesday. The rallying dollar index coupled with outside market pressure and lower boxed beef prices held market prices lower most of the session. Midday beef prices were reported 35 cents lower for choice and 75 cents higher for select cuts. Sluggish beef demand and undeveloped cash trade weighed on market prices as well.
Lean hog futures closed lower on Tuesday. Hog futures closed lower on outside market weakness and the surging dollar index. Lower cash prices and sluggish demand for pork also weighed on the market today. Weakness in the corn market was expected to support hog futures helping to alleviate rising feed costs but instead added additional pressure as price declines may in fact increase hog production.