Corn futures closed lower on Tuesday. Prices traded mostly lower in narrow range of 2 to 6 cents off unchanged with the nearby December contract falling below the 50 day moving average of $7.83. Corn futures extended losses for the second consecutive day on position squaring as the trade prepares for the release of the September WASDE report. Analysts and traders are expecting another decline in new crop corn production as well as yield production. December corn closed down 5 ¾ cents while March closed down 6 cents.
Soybean futures closed lower on Tuesday. Although the trade anticipates USDA to slash soybean production estimates once again, soybean futures declined to a three week low. Last week the market set several record highs in anticipation of lowered production, but this week’s position squaring and long liquidation ahead of the WASDE report sent prices on a downward spiral. Prices in the soyoil and soymeal markets closed sharply lower as well. Soyoil was down 68 to 70 points while soymeal plunged more than $3 dollars. November soybeans closed down 19 ¼ cents.
Wheat futures closed mixed but mostly lower on Tuesday. Prices tumbled on spillover pressure from the corn and soybean markets and position squaring ahead of the USDA’s September WASDE report. Futures were also pressured by lackluster demand for U.S. wheat while global wheat stocks continue to decline. Tomorrow’s report will not show any new estimates for wheat but traders are expecting USDA to decrease global production and ending stocks, reflective of poor production in key growing regions (ie Russia, Ukraine, Australia, etc). December wheat at CBOT closed down 6 ¼ cents; KCBT closed down ½ cents, and MGE closed down at ¼ cents.
Live cattle futures closed higher on Tuesday. Expectations for steady to higher cash cattle prices prevailed, supporting futures throughout the trading session. Added support by way of a significant jumped ($1.12) in choice cuts also helped to boost prices. Cash trade remains undeveloped and could prove disappointing for this week if packers remain reluctant in purchasing beef products. October closed up $1.35 while December closed 78 cents higher.
Lean hog futures closed mixed on Tuesday. Session losses slacked up moderately, but prices could not rebound above unchanged today. Contracts were mostly lower across the board today with the exception of the October contract, which was primarily supported by spillover strength in the cattle complex. Overall bearish market fundamentals continue to burden the market along with steadily declining cash prices. October closed 15 cents higher while December closed 15 cents lower.