Soybean Futures Reach 7-Month High
Cattle futures trimmed losses into the close Tuesday, pressured by worries about slack demand for beef at historically high prices.
April live-cattle futures fell 25 to $134, Cattle for June were flat with the prior session’s close at $125, and Feeder-cattle futures for April rose 50 to $156.
The hog market, meanwhile, is rising, extending gains from the previous session on hopes for supplies to expand more gradually than analysts feared. Expectations are for demand to pick up, too, supported gains. April hog futures rose 32 to 70.25, Hogs for June picked up 47 to 82.89
Grain and soybean futures climbed on Tuesday, as hopes rose for a pickup in demand for some crops and weather concerns lingered.
Soybeans rose to a seven-month high, buoyed by slow farmer selling in Brazil and a rally in soybean oil. Wheat gained to a two-week high, bolstered by worries about threats to U.S. production from recent cold weather and coming warm, dry weather that could curb crop-yields. Corn lifted to the highest level in three months, amid investor short covering ahead of major crop reports due from USDA on Thursday.
May Soybeans gained 7 to $9.16, May Chicago wheat rose 5 3/4 to $4.76, May KC wheat gained 4 ¾ to $4.81, and May corn gained 2 1/2 to $3.73
Cotton futures gave back Monday’s gains with the May contract dropping 42 to 57.38, and December new crop falling 44 to 57.03.
Gold futures extended gains Tuesday, lifted by dovish comments from Federal Reserve Chairwoman Janet Yellen. April gold gained $20.60 to $1,240.70, and April silver closed at $15.34, up 15 cents.
Oil futures fell to a two-week low Tuesday on concerns that the global market remains too oversupplied to support prices near $40 a barrel.
Futures have rallied sharply in recent weeks on expectations that major oil producers would agree to freeze production and U.S. oil production would start dropping more quickly due to spending cuts. But some analysts and traders warned that the price gains were unsustainable because the global glut of crude persists, with storage facilities close to full around the world.
May crude dropped $1.11 to $38.28 a barrel, Gasoline futures recently fell 1 cent to $1.46 a gallon, and Diesel futures fell 2 cents to $1.16 a gallon.
Natural-gas gained Tuesday on forecasts of colder weather in the next two weeks. April Natural-gas gained 5.5 cents to $1.90.
The S&P 500 closed at its highest in 2016 on Tuesday after Federal Reserve Chair Janet Yellen called for caution on raising interest rates – music to Wall Street’s ears. The Dow gained 97 to 17,633, the Nasdaq closed at 4,846, up 79, and the S&P 500 gained 17 to 2,055.