Corn futures traded lower on Tuesday. The July contract fell to seven-month lows. Strength in the dollar, weakness in the stock market, lower crude oil prices and the strong pace of planting this spring were bearish factors. USDA pegged corn planting at 50% complete, a new record for this date and well above the five-year average of 22%. May closed 4 3/4 cents lower at $3.47 1/2 and July ended 5 3/4 cents lower at $3.53 3/4.
Soybean futures were solidly lower on Tuesday. The market was pressured by outside market pressure and the outlook for favorable progress in soybean planting. USDA has not reported soybean planting progress numbers yet nationally, but the strong pace of corn planting points to a fast start for soybeans as well despite some rainy weather this week. Strength in the dollar and weakness in the stock market and crude oil are bearish factors for commodity markets. May ended 16 cents lower at $9.82 3/4 and July was 16 cents lower at $9.93.
Wheat futures settled higher on Tuesday. Short-covering supported prices following the strong losses on Monday. However, gains were limited by strength in the dollar and mostly bearish fundamentals. Continued strong winter wheat condition ratings and good spring wheat planting progress were bearish factors. CBOT May closed 2 1/4 cents higher at $4.78 1/4, KCBT May ended 2 cents higher at $4.92 1/2 and MGE May was 3 cents higher at $5.16 1/4.
Cattle futures closed sharply lower on Tuesday. Profit-taking and fund selling was driven by the weakness in the stock market. There are ideas that domestic beef demand would suffer from financial problems, especially given the higher price of beef relative to chicken or pork. April was $1.48 lower at $98.05 and June was $1.78 lower at $93.73.
Lean hog futures were mixed on Tuesday. Front end contracts were supported by steady to higher cash trade and firm pork cutout values on Monday. Deferreds turned mixed after a higher open amid concern that losses in the stock market would reduce domestic pork demand. June closed 68 cents higher at $84.95 while July was 3 cents lower at $84.70.