Corn futures settled 7 to 16 cents lower on Tuesday. Corn prices were pressured in early morning trade as traders looked to liquidate their long positions in the market. The market saw added pressure as the Spanish banking system was downgraded and investors looked to sell off risky assets. Sharp declines in the wheat market also pulled corn prices down.
Soybean futures settled 3 to 5 cents higher on Tuesday. Gains in futures prices were cut short as the market was pressured by the downgrade of the Spanish banking system and weakness in the corn and soybean markets. The dollar index was bearish for the market also. Prices were supported on news that China is looking to increase soybean imports for the 2011/12 crop year. Reduction of the Argentinean soybean crop due to on-going drought lended support to the market as well.
Wheat futures settled 14 to 23 cents lower on Tuesday. Wheat futures plummeted as timely rains in Australia and the Black Sea Region over the holiday weekend eased uncertainties on global wheat supplies. Prices were also pressured by outside market factors such as the economic stability of the European Union and more recently the downgrade of Spain’s sovereign rating.
Cattle futures settled 20 to 45 cents higher on Tuesday. The market was supported by increased demand as retailers seek to restock their shelves after the holiday. Gains were limited as the dollar index rose and the downgrade of Spain’s sovereign rating loomed over the market. Packer margins are in the red after the Memorial Day holiday; however trade in the cash market is expected to be steady.
Lean hog futures settled 90 cents to $1.55 higher on Tuesday. Hog futures continued to rally despite continued decline in the pork cutout value and weakness in outside markets. Gains in the market were constrained as concerns mounted over the Spanish downgrade and looming EU debt crisis. Cash market trade is expected to be 50 cents to $1 higher this week.
Cotton futures settled mixed on Tuesday. Cotton futures traded choppy throughout the day. Prices trended up during the morning as the Euro decline against the dollar. The market was pressured by the lingering economic situation in the EU and reports that China may sell some of its state reserves.