Corn, wheat markets end strong on weather worries
Corn futures settled 15 to 28 cents higher on Tuesday. Corn prices continue to climb on dry weather concerns. Afternoon weather forecasts indicate that some rain is likely across portions of the Midwest this weekend, but may not be enough for the quickly deteriorating corn crop. USDA reported corn condition ratings at 56 percent good to excellent, down 7 percentage points from the previous week.
Soybean futures settled 15 to 18 cents lower on Tuesday. The market closed lower mostly due to improved weather forecasts and profit taking after yesterday’s moderate price rallies. Afternoon weather forecasts have adjusted and now predict some rain over parts of the Midwest. This will beneficial for soybean recovery after weeks of dry conditions.
Wheat futures settled mixed but mostly higher on Tuesday. Wheat brushed off outside market pressure to close relatively higher. Weather seems to be moving to the forefront of dominant factors affecting the wheat market. Hot, dry conditions in the Black Sea region are currently pushing prices higher. Global wheat reductions in Russia and Australia also supported market prices today.
Cattle futures closed lower on Tuesday. Cattle futures traded both sides of the market throughout much of the day. Prices were pressured by weakness in the feeder cattle market due to rising feed costs and uncertainty in the cash market. As of today, no trade has taken place in the cash market but is expected to pick up later in the week. Midday boxed beef prices showed signs of renewed strength with choice up $1.18 and select down only 9 cents.
Lean hog futures closed mixed but mostly lower on Tuesday. The rally in the cash market seems to be easing as prices are not as firm as they were over the last few trading sessions. Prices were weighed down on expectations of higher production costs due to soaring grain prices and weakening demand ahead of the July 4th holiday. End of the month long liquidation negatively affected today’s prices as well.