Cattle Futures Bounce on Softer Corn Futures

Cattle futures bounced on Tuesday as falling grain prices cut feed costs for producers.

August feeder cattle rose 257 to $147.  A correction in corn prices on Tuesday, which have recently rallied over concerns about dry weather, helped reduce the cost of feeding the herds.

August live cattle futures also rose, climbing 105 to $114, and October gained 140 to $114.

Hog futures were mixed, with front-month contracts gaining while later-months fell.

August lean hogs rose 67 to 82.25, August gained 25 to 82.25.

Soybean futures reversed course on Tuesday to close higher as the outlook for this year’s crop remained cloudy.

A bout of unexpected rain across parts of the Midwest and Plains overnight, along with wetter forecasts for the coming weeks, initially prompted traders to take profits in grain-and-oilseed markets after gains on Monday. But a lack of clarity over those longer-term forecasts eventually pushed some prices back up. Soybean and wheat futures closed higher, while corn contracts regained most of their losses.

August soybeans rose 4 ½ to $10.29, September Chicago wheat climbed 3 to $5.53, September KC wheat gained ¼ to $5.57, and September corn fell ¼  to $4.01.

Cotton futures saw a bit of a rebound on condition worries in some growing areas.  October cotton gained 43 to 68.15, and December gained 38 to 67.67.

Oil futures rose Tuesday as traders and investors anticipated that U.S. data will show that a glut of oil is continuing to shrink.

August crude gained 64 cents to $45.04 a barrel, Gasoline futures rose 1.76 cents to $1.51 a gallon, and Diesel futures rose 2.27 cents to $1.47 a gallon.

Natural gas futures posted their largest gain in nearly a month amid a warmer weather forecast that boosted expectations for demand.

August Natural gas rose 11.8 cents to $3.04.

On Wall Street, stocks ended little changed on Tuesday in a session marked by knee-jerk reactions to events in Washington that drove investors to first worry then hope about prospects for the Trump administration’s economic agenda.  The Dow was unchanged at 21,409, the Nasdaq closed at 6,193, up 17, and the S&P 500 fell 2 to 2,425.

A native of the Texas Panhandle, Rhonda was born and raised on a cotton farm where she saw cotton farming evolve from ditch irrigation to center pivot irrigation and harvest trailers to modules. After graduating from Texas Tech University, she got her start in radio with KGNC News Talk 710 in Amarillo, Texas.