Tuesday morning trade started quietly but did not stay that way for long. Soybean oil surged higher, dragging soybeans along, and new-crop December corn scored another new contract high and a fifth consecutive higher close. May corn futures rallied sharply as well, with the calendar spreads illustrating the strengthening cash basis, with cash now above delivery value. Dryness enveloping much of Brazil’s safrinha corn areas has brought buyers back into the markets as well. Analysts are saying that as much as 8 mmt to 10 mmt of Brazilian corn could be at risk, as it was planted beyond the optimal time.
Meantime, it’s been another tough day on the cattle contracts, and especially in the feeder cattle market as corn prices made a healthy rally at regaining what Monday lost. For feedlots that are still hoping to get higher cash cattle prices this week, thankfully the week is still young and there’s still time to see things improve before cash cattle need to trade. Hogs were stronger in the deferred months today.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406