Grains close higher on Tuesday
Corn futures were higher on Tuesday with gains aided by strength in wheat and soybeans as well as the outside markets. Futures were 2-3 cents higher most of the day, but added to gains late in the session. Even so, the price range was limited. USDA reported that harvest is essentially complete at 95%. The trade continues to consolidate ahead of USDA Crop Production report on Friday. December corn closed 5 ½ cents higher at $7.40 ¾. The March contract was 5 cents higher at $7.42 ¾.
Soybean futures were higher on the close Tuesday. January futures were up 12 1/4 cents and closed at $15.15 1/2. New-crop November of 2013 jumped 10 1/4 cents today to close at $13.44 1/2. Modest concerns about the state of plantings in South America continued. Weather patterns do project toward drier conditions in Argentina and wetter conditions in Brazil, both of which are preferred by their respective farmers. Casting supply doubts were published comments from the German publication Oil World which indicated that it saw risk of the Argentine crop totaling 3 mmt to 6 mmt less than the general views at 55-56 mmt.
Wheat futures closed with double-digit gains and near the day’s highs on Tuesday. There was no particularly bullish news for wheat; just growing awareness that USDA is likely to reduce projected global ending stocks yet again on Friday in its November WASDE update and that the 2013 U.S. winter wheat crop is registering the poorest crop condition ratings heading into dormancy in more than 25 years. But today was generally a good day for commodities in general, with the outside markets all positive: Crude oil and gold were up sharply. The DJIA rose triple digits and the U.S. dollar index declined. Chicago December wheat closed 11 cents higher at $8.77; KCBT December 10 ½ cents higher at $9.19 ½ and MGE December closed 8 cents higher at $9.48.
Cattle futures were a little higher on Tuesday. The cattle market was supported by higher beef prices and gains in the stock market. No cash trade has developed. So far few bids have surfaced. Modest gains in the corn market were seen as positive for cattle futures. December cattle futures were 40 points higher at $125.67 and February closed 37 points higher at $129.37.
Lean hog futures settled mixed, but mostly higher on Tuesday. Deferred contracts were lower for much of the day but the June contract battled back late in the session to settle with a very small gain. Nearby contracts were higher for most of the session with December settling at $77.58, up 65 cents. A good bounce in the stock market coupled with slightly higher cash hog and corn prices helped to support hog futures. June settled up 3 cents at $98.15, but the contract has dropped by nearly $2 since last Thursday.