YOUR AG NETWORK — Grain markets finished mixed Tuesday as fund activity shifted and traders digested limited fresh news, according to analyst and broker Brian Hoops of Midwest Market Solutions.
Corn futures closed down 1.5 cents, while wheat contracts were 1 to 5.5 cents lower on the session. Hoops said investment funds, which had recently been active buyers in both corn and wheat, were largely absent Tuesday and turned into light sellers during the day.
Soybeans bucked the trend, closing 3 to 4 cents higher. Hoops noted that funds were modest buyers in the soybean market, helping support prices.
“Limited news is affecting the markets,” Hoops said, adding that traders continue to watch for potential export business from China, although he described that prospect as unlikely in the near term.
In South America, private analyst Dr. Michael Cordonnier reduced his estimate for Brazil’s corn production by 1 million metric tons to 135 million tons. He cited the passing of the ideal planting window for the country’s safrinha, or second-crop corn. Cordonnier also lowered Brazil’s soybean production estimate by 1 million tons to 178 million tons, maintaining a neutral outlook.
Weather conditions remain mixed across Brazil. Excessive rainfall in central regions has slowed fieldwork, while dryness in Rio Grande do Sul has been sufficient to trim yield expectations, Hoops said.
Livestock markets were choppy and two-sided by the close. February live cattle futures were up 5 cents, while April live cattle slipped 15 cents. Feeder cattle rose 80 cents, and lean hogs climbed $2.10.
In wholesale beef trade, midday boxed beef prices were higher. Choice cuts increased $6.65, while Select rose $1.79 on 58 loads traded. The five-area weighted average fed steer price, commonly referred to as the “cattle index,” was slightly lower. Packer margins remain deeply negative, Hoops said.
Traders were awaiting the release of the U.S. Department of Agriculture’s monthly cold storage report later in the day.
Hoops encouraged producers and investors with questions to contact Midwest Market Solutions.