GRAINS:
March corn closed unchanged and May corn was up a 1/4 cent. March soybeans closed up 11 3/4 cents and May soybeans were up 12 1/2 cents. March KC wheat closed up 1 3/4 cents, March Chicago wheat was down a 1/2 cent, March Minneapolis wheat was down 2 1/4 cents.
Soybean futures led the way higher on Tuesday, resuming rallying efforts after a brief pause on Monday. Meanwhile, corn and wheat markets were mixed as USDA made very few changes to U.S. and global balance sheets but did reiterate multi-year highs in grain reserves. Outside markets were mixed for Tuesday with softer energy markets, while the U.S. dollar recovered from the turn lower on Monday.
LIVESTOCK:
In trying to wait patiently for the week’s fundamentals to shine through the marketplace, the live cattle complex was mixed for the bulk of the session before finishing lower, as traders simply aren’t willing to advance the market at this point without first seeing fundamental reassurance develop. It’s quite likely the market could enter a sideways trading range until it sees what the fed cash cattle market is going to accomplish this week. Traders don’t want to pressure the market’s resistance from a technical standpoint, but at the same time they believe in the market’s long-term, bullish fundamental outlook, which is why a sideways trend is most likely to be the theme throughout the remainder of the week and until cash cattle begin to trade. Tuesday’s WASDE report shared a fruitful outlook for the cattle and beef markets of 2026. Beef production for 2026 was increased by 185 million pounds as fed cattle slaughter is expected to increase, cow slaughter is expected to increase, and carcass weights are obviously higher. Boxed beef prices are mixed: choice up $2.24 ($370.00) and select down $0.82 ($364.53) with a movement of 74 loads (53.35 loads of choice, 4.31 loads of select, 4.17 loads of trim and 11.88 loads of ground beef).
Without a strong presence seen in the live cattle complex, the feeder cattle contracts were also trading mixed into Tuesday’s noon hour, before fading and finishing lower. But what remains interesting about the feeder cattle market’s behavior is the deferred contracts aren’t concerned about what the live cattle contracts are doing and instead traded fully higher, seeming more focused on the market’s long-term situation of short supplies for the bulk of today’s session.
The lean hog complex was again trading lower as the market seems to be anticipating increased supplies that are soon to hit the market. The last quarterly Hogs and Pigs report unveiled more market-ready supplies than what the industry anticipated, and there were plenty of hogs noted in the heavy weight categories which will meet the consumer in the supply chain at any point in time now. But what also remains true is that while the futures complex may be scaling lower, pork demand over the last two weeks has been noticeably stronger, which one may logically assume is because some consumers are electing to purchase pork as opposed to beef as it’s a cheaper protein option.
