Corn futures turned sharply higher into the close on Tuesday and closed with limit gains. More hot weather in the Corn Belt threatens to trim corn yields. Many areas got rain last week and crop conditions were stable at 62% good to excellent, but more heat this week and dry conditions in the lower Midwest and South are leading to smaller crop production ideas. September closed 30 cents higher at $7.11 1/4 and December was 30 cents higher at $7.15 3/4.
Soybean futures closed solidly higher on Tuesday. Spillover support from corn helped push prices higher. Hot weather in the Midwest is threatening corn yields and is stressing some soybeans, although if rainfall develops soon soybean yields could still be strong. Soybean crop condition ratings declined 2 points last week to 60% good to excellent – right on the ten-year average. September ended 16 3/4 cents higher at $13.70 and November was 17 3/4 cents higher at $13.79 3/4.
Wheat futures turned strongly higher on Tuesday. The wheat markets were pulled higher by the limit gains in corn. Short-covering was triggered by ideas that corn production will be hurt by hot temperatures in July and the first part of August. The MGE was down strongly this morning on concern about vomitoxin in spring wheat, but it was pulled higher as well. On Monday afternoon, USDA lowered the spring wheat condition rating number to 70% good to excellent from 74% the previous week. CBOT September closed 41 1/2 cents higher at $7.18, KCBT September was 36 3/4 cents higher at $8.08 and MGE September ended 15 1/4 cents higher at $8.49 1/2.
Cattle futures closed mixed on Tuesday. Expectations for firm cash trade this week helped support futures much of the day. Showlists are mostly smaller, especially in Nebraska and Kansas. But gains in futures were limited by hot and dry weather in the southern Plains that could encourage some feedlots to market cattle earlier than normal. Also, hot weather over much of the U.S. could limit beef consumption. August ended 75 cents lower at $112.55 while October was 25 cents higher at $118.05.
Lean hog futures ended mixed on Tuesday. After setting some contract highs in deferred contracts this morning, trading turned choppy. Record high pork prices and hot weather in the Midwest that is slowing hog marketings are supporting the cash market. Pork prices have hit new record high levels for five consecutive days, but there is concern that high prices will hurt consumption. August closed 70 cents higher at $103.80 while October was 33 cents lower at $92.68.