US Agriculture after the Closing Bell Report

Wheat futures were weaker throughout the day Tuesday. Chicago Wheat closed 0.85 to 0.0975 lower, Kansas City ended 0.075 to 0.11 lower and Minneapolis Wheat was 0.0725 to 0.1525 lower. A combination of negative outside markets and rains across the Central and Southern Plains weighed on wheat futures today. A risk-off mentality across the investment World added to the price pressure.

Corn futures were under pressure throughout the day and finished 0.10 to 0.16 lower in the May through Mar 2013 contracts while far-deferred months were 0.07 to 0.085 lower. Funds sold an estimated 18,000 contracts, 90-M bu. of Corn today. An attitude of risk aversion and a firmer USD left the Corn market vulnerable to profit-taking Tuesday. Soybean futures closed 0.1675 to 0.215 lower, with old-crop contracts leading the price decline. Futures finished near session lows, leaving them susceptible to follow through selling Wednesday. Funds were noted sellers, selling an estimated 7,000 contracts, 35-M bu. of Soybean on the day. Soybean futures faced lots of pressures today; fundamental, technical and strong risk off trade in the investment world.

Cotton futures extended gains through the day and ended 67 to 148 pts lower, with the Oct contract leading losses. Losses were largely tied to negative outside markets, as strength in the USD index resulted in broad-based selling in the commodity sector. Crude Oil and Gold futures were sharply lower, with grain futures also posting sharp losses.

Lean Hog futures closed moderately to sharply lower and finished near session lows. Lean Hog futures were pressured by a broad-based risk off movement in the investment world today. Commodities sold off aggressively and the USD index was higher amid concerns China's economy is slowing, which could negatively impact demand for raw materials.

Live Cattle futures posted a downside day of trade and finished low-range with losses of 0.775 to 1.70. Feeder Cattle futures finished with sharp losses in most contracts. Cattle traders removed risk in earnest today amid a firmer USD. Pressure also came from uncertainty about Beef demand. After reaching record highs in recent weeks, prices fell sharply, spurring strong movement. This week, prices have again firmed, but movement has slowed.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.