Cattle futures closed higher Tuesday after shrugging off the last of their post-Brexit decline and signs the market may have found a bottom despite abundant supplies.
Meatpacker and retail margins remain elevated and a dip in the dollar helped the broader protein complex Tuesday, though front-month lean-hog futures slipped late after overcoming an early decline and closed lower for the fifth straight session.
June live-cattle futures closed up 105 at $111, the more heavily traded August contract ended up 65 at $112, and August feeder-cattle futures rose 55 to $140.
With cash hog prices holding steady despite expectations for a modest decline, lean-hog futures spent most of session down and couldn’t hold on to a late rally, ending 12 lower at $83.02, the August contract ended up 50 at 84.00.
Lingering worries over Midwest weather and a softer U.S. dollar pushed soybean futures higher on Tuesday, while corn prices were mixed and wheat fell.
Soybeans climbed for a second consecutive session, rebounding as panic caused by Britain’s unexpected vote to leave the European Union subsided and the dollar reversed its recent ascent, sliding 0.3% against a basket of international currencies. Corn was mixed at the close of trade, with nearby futures unchanged and later-dated futures slightly lower. Wheat fell to a fresh nearly four-month low, pressured by harvest progress in the U.S. southern Plains, where farmers currently are ahead of schedule and collecting bountiful winter crops. Losses in the market were capped, however, by the weaker dollar.
July Soybeans rose 17 1/2 to $11.50, July corn was unchanged, September- slipped 1/2 to $3.88, July Chicago wheat declined 3 to $4.43, and July KC wheat fell 4 to $4.08.
Cotton futures gained on Tuesday with the October contract gaining 145 to 66.14, and December new crop jumping 148 to 65.86.
Gold futures retreated Tuesday as investors took profits after several days of sharp gains. July gold fell $9 to $1,313.00, and July silver gained 8 cents to $17.82.
Oil prices rose on Tuesday, pushed higher by the threat of union strikes by Norwegian oil and gas workers and expectations of another drop in U.S. crude inventories.
August crude gained $1.52 to $47.85 a barrel, Gasoline futures settled up 3.33 cents at $1.51 a gallon, and Diesel futures rose 4.19 cents to $1.471 a gallon.
Natural gas prices surged Tuesday on expectations of continued strong consumption and concerns about a drop in production following an explosion at a processing plant. July nat gas gained 20.1 cents to $2.91
Stocks Wall Street bounced back on Tuesday, recouping some recent losses, as investors sought cheap assets after a two-day equities rout sparked by Britain’s decision to leave the European Union. The Dow gained 269 to 17,409, the Nasdaq closed at 4,691, up 97, and the S&P 500 gained 35 2,036.