CBOT futures closed mixed. Futures moved higher early in the overnight session after posting significant losses on Monday. But prices weakened by sunrise, rallied into late morning, then closed weakly. Wheat futures suffered the most and closed lower – double digits off today’s highs. A strengthening US Dollar and talk of a larger French wheat crop weighed on futures.

Tonight’s 6-10 and 8-14 day NWS outlooks show above-normal temperatures and below-normal rain for the area between the Rockies and central KY. This might offer support to futures. Fortunately, most of KY will receive some good rains Wed/Thursday according to NWS.

Cattle futures closed little changed. An early-day rally faded mid-morning, probably as traders learned of weaker boxed beef markets. By day’s end, Choice Beef dropped .51 to 233.48 and Select lost .66 to 228.17. Cattle futures mostly traded inside Monday’s wider ranges that came with the sharp price rally.

Lean Hog futures closed strongly higher, adding to Monday’s gains. However, the nearby August LH contract was only up 25 cents in late-day trading. Market support came from higher pork values and futures discount to the CME LH Index. FOB Plant Pork closed up .63 at 88.57.

Treasury yields soared today with Atlanta Federal Reserve President Lockhart saying he was likely to support a rate hike at the September FOMC meeting. However, the 10-year rate of 2.225% is still far below the recent high of 2.44% set on July 13. The 12-month range is 1.68-2.62% for the 10-year bond.

Corn Sep +2 369; Dec +2 379 (376-83); Dec16 +3 395 Bean Sep +4 949; Nov +7 942 (933-49); Nov16 +5 910 Meal +1 337 Oil -2 2995 Wheat Sep -5 493 (491-507); Jly16 -2 516 KC -4 485; MGE -3 514 Oats +1 236 Rice +6 1145

LC Aug +22 14822; Dec +32 14972; Feb +37 14957 FC Aug +10 21395; Oct -5 20877; Jan +7 20162 LH Aug +120 8140; Oct +202 6735; Dec +125 6315 Milk Aug -3 1639; Sep +7 1680

 

US$ +.4% Dow -48 17551 SP -5 2093 NAS -10 5105 Tran +10 8427 VIX +.44 13.00 +3.5%

WTI +83 4600 Brent +68 5020 Gas +3 170 NG +7 281 HO +3 156 Eth unch 149 Gold -2 1087 Slvr +3 1455

2-yr +.071 0.736% 5-yr +.093 1.607% 10yr +.073 2.225% 30yr +.040 2.901%