Financial markets depressed commodity markets Tuesday. Renewed concerns about European Monetary Union and the euro have resurged this week, thereby spurring big U.S. dollar gains and sending stock indexes lower. Both of those reactions are seen as negative for commodity demand, which was probably a big reason corn futures fell today. The outsized wheat breakdown apparently weighed on corn as well. July corn futures settled 5.0 cents lower at $3.55/bushel Tuesday, while December lost 4.5 to $3.7325.

Argentina’s labor situation may have supported the soy complex. The recent rebound in palm oil prices probably boosted the U.S. soyoil market, but one has to wonder if the worsening Argentine labor situation supported the whole soy complex. Strikes at soy crushing plants and ports have reportedly created a big backlog of ships, which in turn may be forcing buyers to look to the U.S. July soybean futures ended Tuesday having skidded 1.75 cents to $9.225/bushel, while July soyoil surged 0.50 cents to 32.05 cents/pound, and July meal sagged $2.3 to $301.9/ton.

Demand considerations seemed to overwhelm bullish wheat news. The rainfall pounding the southern and western Plains spurred fresh Monday night gains in the KC and Minneapolis markets, but they futures fell in concert with Chicago quotes as Tuesday passed. The breakdown likely had significant technical/pragmatic components, but it was rather clearly triggered by financial market developments implying declining demand. July CBOT wheat futures plunged 21.75 cents to $4.935/bushel at Tuesday’s close, while July KC wheat dove 22.0 cents to $5.245/bushel, and July MWE wheat tumbled 15.5 to $5.5325.

Cattle futures seemingly posted a belated bullish reaction to last Friday’s USDA Cattle on Feed report. Concurrent U.S. dollar strength and diving equity markets probably weighed on cattle prices due to their negative demand implications. In contrast, firm midday beef quotes probably supported CME quotes. Ultimately, nearby futures slippage and deferred gains seemingly represented a belated price reaction to Friday’s USDA report. June live cattle futures slid 0.32 to 151.80 cents/pound At Tuesday’s CME settlement, while August cattle dipped 0.07 to 150.62. Meanwhile, August feeder cattle futures advanced 0.60 cents to 219.60 cents/pound, and November feeders moved up 0.42 to 216.72.

Large supplies apparently spurred CME hog sales. Last week’s hog slaughter topped the comparable year-ago figure by 9.3%, thereby suggesting a relative increase in short-term hog and pork supplies. That news, along with the negative demand signals being sent by the financial markets seemed to weigh on the swine market to start the week. June hog futures stumbled 0.55 cents lower to 83.17 cents/pound in late Tuesday trading, while December declined 0.17 to 70.07.