Cattle futures fell for a second consecutive day as concerns over large supply continued to weigh down prices.
Contracts for cattle swung back and forth Tuesday, initially rising before giving back gains. Analysts said the path of least resistance was lower, though on a technical level, prices were stuck in a trading band.
August Live cattle fell 27 to $112, extending losses after closing near their lower daily limit Monday. The October contract dropped 52 to $110, and Feeder cattle futures for August fell 22 to $146.
Hog futures, meanwhile, were mixed. The CME’s front-month August lean hog contract, which expires next week, rose 12 to 83.52. August futures continue to rise and close the gap between the CME lean hog index, which tracks the cash market. October lean hog futures were 37 lower at 67.75
Soybean futures rose even as grain prices slumped on Tuesday, with ongoing concerns about the oilseed crop driving the market higher.
USDA said on Monday that the share of soybeans in good-or-excellent condition rose to 60% as of Sunday from 59% a week earlier. But that improvement was overshadowed by ongoing concern about drier forecasts in the Midwest just as oilseed plants pass through their crucial pod-setting phase. Grain futures, meanwhile, fell after rising overnight as traders took profits on recent rallies. Both U.S. corn and spring wheat crops nevertheless face considerable difficulty, analysts say, after one of the most erratic growing seasons in recent years.
September Soybeans rose 3 ¼ to $9.67, September Chicago wheat fell 6 ½ to $4.57, September KC wheat dropped 6 ¼ to $4.60, while September corn dropped 2 ½ to $3.69.
Cotton futures retrieved some of the losses from Monday with the October contract gaining 69 to 71.91, and December gaining 58 to 71.13.
Oil prices gave back gains Tuesday, as projections for U.S. oil production climbed and other major oil-producing nations met to discuss compliance to a deal to curb output.
September crude settled down 22 cents to $49.17 a barrel, Gasoline futures fell 2 cents to $1.61 a gallon and diesel futures dropped 2 cents to $1.62 a gallon.
Natural-gas prices crept higher Tuesday, extending a recovery after bearish sentiment drove prices to a five-month low.
September nat gas gained 2.1 cents to $2.82.
On Wall Street, stocks fell on Tuesday in a late afternoon selling spree following U.S. President Donald Trump’s warning he will counter North Korea with “fire and fury” if the country endangers the United States. The Dow fell 33 to 22,085, the Nasdaq closed at 6,370, down 13 and the S&P 500 fell 6 to 2,474.