GRAINS:
The past three sessions for ag commodity futures markets could be described as a textbook example of “buying the rumor, and selling the fact,” as corn and soybeans specifically benifitted from buying leading into Friday’s report. However, it appears clear at this point that even with larger-than-expected reductions in U.S. production, corn and soybean traders are seeing the need to take profits on those longs because while production was reduced, the “fact” still remains that 2024 as estimated stands as one of the top three historical production levels for both of the major U.S. crops, and lingering demand concerns for 2025. Volume remains suppressed compared to recent weeks and outside markets did the ag complex little favors Tuesday with corrections in the Dow Jones Industrial Average, as well as a surging U.S. dollar. December corn closed down 1 1/2 cents and March corn was down 2 1/2 cents. January soybeans closed down 11 3/4 cents and March soybeans were down 12 3/4 cents. December KC wheat closed down 13 cents, December Chicago wheat was down 13 1/4 cents and December Minneapolis wheat was down 14 1/4 cents.
LIVESTOCK:
The livestock complex traded mostly higher into Tuesday’s close as the uptick in the equity markets is helping drive positive momentum throughout the livestock contracts. Still no cash cattle trade has developed but asking prices are noted in the South at $188 to $189. Originally the live cattle complex was reluctant to trade higher but as Tuesday progressed traders changed their tune, albeit very subtle. It’s interesting to watch the dynamics currently in the lean hog complex as the nearby contracts are traded slightly higher, but the deferred months struggled most of the session but did manager a slightly higher close.
