The crop markets traded mixed Tuesday with corn and wheat sharply higher and beans lower. Ethanol margins are under pressure as DDG values fall and ethanol demand weakens. USDA’s crop progress report stated corn ratings fell 2% to 71% good to excellent compared to 74% last year and compared to the 74% average. The US Dollar index surged 1.05 points to 95.36 and the Dow gained 15 points. July corn futures are up 7.5 cents to $3.675/bushel at the close Tuesday, while December gained 7.75 cents to $3.8125.

The soy complex ended lower Tuesday after trading sharply higher yesterday in response to the impact of above average moisture on planting and condition ratings. Beans fell over 10 cents lower today but bounced back from those lows. Profit taking and fund consolidation might explain these swings as the market continues to weigh potential effects on acreage. Missouri and Kansas seem to be the focus going forward as they are 37% and 18% behind average planting progress, respectively. July soybeans lowered 2 cents to $9.875/bushel at the close Tuesday, while July soyoil dropped 0.10 cents to 32.82 cents/pound, and July meal fell $1.7 to $331.9/ton.

Wheat futures were sharply higher Tuesday. Some concerns still linger of dryness in black sea region and in Russia. Reports have also emerged that a fungal disease, head scab, is quickly spreading in wheat fields in central Kansas. Winter wheat harvest advanced only 8% to 19% complete compared to the 31% average. July CBOT wheat futures jumped 21.25 cents to $5.225/bushel at dawn Tuesday morning, while July KC wheat climbed 4.5 cents to $5.165/bushel, and July MWE advanced 18 cents to $5.71.

Live cattle futures were mixed- lower Tuesday. Beef cutout values have continued higher perhaps in efforts to capture margins for last minute retail coverage for July 4th. Market appears to be anticipating the post 4th slide in demand and subsequent run up in demand before Labor Day. August cattle futures rose .07 cents to 151.97 cents/pound at the close Tuesday, while December futures fell .15 cents to 155.72. Meanwhile, August feeder cattle futures slid .62 cents to 225.20 cents/pound, and November feeders lost .67 cents to 219.95.

Lean hog futures were higher Tuesday amidst a sustained down-trend since mid-May’s high of 85.25 cents/pound . Markets have continued to adjust to oversupply even as we are in the highest demand period of the year. Current prices are still well below the 40-day moving average of 81.56. August hog futures ended Tuesday up .07 cents to 72.42 cents/pound, while December gained .42 cents to 61.15.