Grain markets were broadly lower Tuesday on better than expected crop progress and ratings as well as an improved weather outlook. The U.S. corn crop rating improved by 1% to 69% good to excellent when the trade expected a 1% downgrade. The USDA will release the Supply and Demand report this Friday at 11am and it will be interesting to see if they make any changes to the corn yield. The US Dollar Index is up .59 to 96.88. July corn futures fell 2.75 cents to $4.1575/bushel Tuesday, while December lost 1.75 cents to $4.3325.
The soy complex retreated again Tuesday as the market acknowledges that soybean crop conditions have fared better than anticipated. Despite continuing to be behind in planting with 2.3 million acres estimated to be left to plant, the trade seems to be feel last week’s rally was somewhat overdone. Dec soyoil was down 1.33 to its lowest close in nearly 3 months, helping to drive beans lower. Adding to the pressure, the U.S. Dollar/Brazil Real exchange rate rose sharply to 3.19, testing the all-time high and dampening the export outlook. July soybeans fell 32.25 cents Tuesday to $10.0125/bushel, while July soyoil lost 1.23 cents to 31.41 cents/pound, and July meal dropped $4.5 to $349.9/ton.
Wheat futures tumbled Tuesday after reports of the winter wheat harvest resiliency. Winter wheat harvest was 55% complete as of Sunday, compared to 38% last week and 58% for the ten-year average. Kansas winter wheat progress was up 31% to 79% complete, and Illinois was also up 31% to 69%. Missouri was up 22% to 68% harvested. Spring wheat conditions slipped 1% to 40% good to excellent, compared to 31% last year. July CBOT wheat futures lost 9 cents to $5.795/bushel Tuesday, while July KC wheat lowered 6.5 cents $5.69755/bushel, and July MWE slid 9 cents to $6.155.
Live cattle futures continued lower Tuesday then rebounded late in the day, despite cash beef values continuing their downward slide. Monday’s afternoon’s USDA boxed beef cutout report showed choice down 2.47 cents/pound and select down 4.13. August cattle futures rose .60 cents to 151.1 cents/pound Tuesday, while December futures gained .22 cents to 154.70. Meanwhile, August feeder cattle futures lifted .22 cents to 216.72 cents/pound, and November feeders advanced .05 cents to 212.88.
Lean hogs futures rallied along with much of the livestock complex today. Buyer support continued to find its way to the hog market today as futures firmed. This burst of strength in the proteins could in part be tied to the significant pullback in corn and beans after the stocks-driven run-up. In the longer run, hog traders are still keeping an eye on grain price hikes that could reduce finishing weights and further reduce farrowing intentions. August hog futures gained .50 cents to 76.50 cents/pound Tuesday, while December was up .27 cents to 63.67.