Corn futures traded strongly lower on Tuesday. A broad-based commodity sell-off was driven in part by reports that Libya’s Gadhafi had accepted a cease fire plan and on renewed concerns about a nuclear disaster in Japan. Traders were spooked by a report from Goldman Sachs warning that commodity prices could fall further. Crude oil was sharply lower and traded near $4 lower much of the day. New-crop futures have been pulled lower as well despite forecasts for cool and wet Midwest weather that could lead to planting delays. May closed 23 1/2 cents lower at $7.52 1/2 and December was 20 3/4 cents lower at $6.36 1/2.
Soybean futures closed sharply lower on Tuesday. Commodity markets were strongly lower across the board today. Also, Japan escalated the severity of the nuclear crisis. Underlying concerns remain on ideas that China could cancel some sales from the U.S. and rising South American soybean production estimates. May ended 38 3/4 cents lower at $13.29 3/4 and November was 36 cents lower at $13.44 1/4.
Lean hog futures posted strong losses in most contracts on Tuesday. The nearby April contract was supported by firm cash markets, but all deferred months were lower. The general sell-off in commodities weighed on hogs. Commodities were pressured by weakness in crude oil. In addition, rising concern about a nuclear disaster in Japan and a report from Goldman Sachs that commodity prices could work lower trigged the sell-off. April closed 20 cents higher at $93.45 while June was $1.70 higher at $99.35.
Wheat futures traded strongly lower on Tuesday. The wheat market turned lower along with other commodities today. A report from Goldman Sachs that recommended taking profits in commodities helped trigger the sell-off. Futures were sharply lower despite the USDA Crop Progress report showing further deterioration in HRW conditions. Nationally, the crop was rated 36% poor to very poor last week, which was 4% more than the previous week. CBOT May was 38 3/4 cents lower at $7.59 1/2, KCBT May closed 25 cents lower at $8.94 and MGE May ended 24 cents lower at $9.11 3/4.
Cattle futures closed sharply lower on Tuesday. Commodities turned lower this morning after Japan’s nuclear threat was raised to the highest level overnight. Strong aftershock earthquakes have continued to cause problems with the nuclear plants. Cash cattle trade has not yet developed this week. April ended $1.35 lower at $117.68 and June was $1.30 lower at $115.60.
Source: Doane Agricultural Report