GRAINS:
Row-crop markets were lower through the session but fought off early weakness to close well off daily lows. Soybean futures reversed course and managed to finish slightly higher on March futures in an optimistic technical trade. Despite plenty of bullish fundamental arguments, corn and wheat markets could not shake liquidation, which currently appears to be primarily technically driven, with any fundamental thesis behind selling pressure likely stemming from greater macroeconomic concerns. Outside markets continue to slump with stock indices in particular having a rough showing the past few sessions. The S&P 500 is down for a fourth consecutive session after hitting record highs last week. President Trump’s comments Monday that tariffs against Mexico and Canada “will go forward” as well as a concerning Consumer Confidence reading Tuesday morning had investors on edge. Meanwhile despite lingering inflationary concerns, outside commodities such as crude oil and gold futures were lower, weakness which spilled over into the agricultural commodities sector. March corn closed down 2 3/4 cents and May corn was down 2 3/4 cents. March soybeans closed up 2 1/4 cents and May soybeans were up 1 1/4 cents. March KC wheat closed down 4 3/4 cents, March Chicago wheat was down 6 1/4 cents, March Minneapolis wheat was down 6 1/2 cents.
LIVESTOCK:
The live cattle complex traded higher and with boxed beef prices higher as well — a sense of bullishness is again taking hold of the market. Also, every day the market trades higher, it’s distancing itself from the 100-day moving average. No developments have surfaced in the cash cattle market. The feeder cattle complex is continuing to trade higher, advancing by leaps and bounds as the market is trading near an additional $2.00 higher Tuesday on top of Monday’s $3.00 to $4.00 higher close. Friday’s supportive Cattle on Feed report has undoubtedly helped the market regain the support of traders, but even though the complex was challenged this past month, the underpinning of the marketplace remained bullish at heart. The technical downturn is continuing to pressure the lean hog complex as the market once again traded lower Tuesday. And with morning cutout values lower and the cash market not lending any support — traders have little hope of trading the market higher.
