The grain markets shot higher Tuesday presumably over acreage uncertainty spurred by Monday’s crop progress report. Half a million corn acres have yet to be planted, most coming from the lagging states of MO and KS. This could call into question the 89-90 million acre production estimates particularly as July is forecasted to be wet. Analysts still support a 167 bu/ac avg yield which is above the 166 bu/ac trend line, yet, again, acreage remains the focus. The crop condition rating for corn fell 1% to 73% good to excellent. July corn rose 5.75 cents to $3.54/bushel at the close Tuesday, and December is lifted 6.5 cents to $3.70.
The soy complex rallied Tuesday as investors continue to weigh the possibility of soybean planted acres missing expectations. Even though soybean planting progress gained 8% to 87%, compared to the 90% four-year average, concern still remains over the 11 million soybean acres that have yet to be planted, particularly with more moisture in the 6-10 day forecast. Nearly 5 million of the remaining unplanted acres are from MO and KS. July soybean futures gained 19.75 cents to $9.575/bushel at the close Tuesday, while July soyoil edged higher .21 cents to 32.90 cents/pound, and July meal surged $7.60 at $320.8/ton.
Wheat futures traded mixed Tuesday. Winter wheat conditions were steady last week at 43% good to excellent. Spring wheat conditions gained 1% to 70% versus 72% last year. Wheat harvest improved by 7% to 11% complete, versus 20% last year. July CBOT wheat futures were down .5 cents to $4.8875/bushel at the end of trading Tuesday, while July KC wheat lost 2.25 cents to $5.065/bushel, and July MWE added 2 cents to $5.4725.
CME cattle futures advanced Tuesday despite recent cash cattle values slipping as NE fed steers fell to 152.91 and OKC feeder steers slid modestly compared to last week. Perhaps firmness in beef cutouts (choice at 247.33 and select at 240.46) contributed to today’s support. August cattle futures rose .32 cents to 151.40 cents/pound at the close Tuesday, while December futures climbed 0.37 cents to 154.82. Meanwhile, August feeder cattle futures gained .92 cents to 224.82 cents/pound, and November feeders lifted .52 cents to 218.45.
Hog futures were mixed Tuesday. Cash hog values lowered yesterday as the national average on carcass values fell to 76.87 from 77.09 . The trade continues to struggle with oversupply despite being at the cusp of what is considered to be the highest demand period of the year. Even so, some analysts are predicting a possible move upward to $80-81. August hog futures gained 0.1 cents to 75.57 cents/pound at Tuesday’s ending session, while December slumped 0.1 to 62.90.