Overall, corn and soybeans led the grain market trade on Tuesday. That reflected concerns over tightening supplies and the forecast for more hot and dry weather ahead. Crop ratings didn’t change much in Monday afternoon’s report; we’ll now be looking towards the September report to see if USDA makes any changes to the yield forecast (most people don’t expect any change in the August WASDE). Spring wheat continues to be in deep trouble as most of that crops is in dire straits. However, spring wheat finished mixed to lower on the day with a late selloff. Also, the July corn contract saw some wild trading ahead of expiration and it could be a sign of things to come as there was a bit of a squeeze at play for folks who were trying to get out of positions today.
For more of an explanation on that July corn contract; check out our Midday Commentary with Jesse Allen and Arlan Suderman of StoneX:
Livestock were nicely higher on the day as strength in live cattle seeped into the feeder cattle contracts near the close. Some light trade in Kansas and Texas was noted at $119-120 today. Also, hogs continued to find support with that August contract holding just above $100.
Farm and Ranch Director Jesse Allen has our closing market report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
More analysis with Jesse Allen and Bill Biedermann of AgMarket.net on today’s full episode of Market Talk below: