At the close on Tuesday, March corn futures were down 7½¢ at $4.84 per bushel. March soybeans ended the day 6¢ lower, settling at $10.43½ per bushel. Wheat contracts also saw declines, with CBOT wheat falling 2½¢ to $5.77 per bushel, KC wheat dropping 4¢ to $5.92¾ per bushel, and Minneapolis wheat decreasing by 7¢ to $6.18¼ per bushel.
The U.S. Department of Agriculture’s (USDA) February World Agricultural Supply and Demand Estimates (WASDE) report had a significant impact on the markets. The report left 2024/2025 U.S. corn and soybean ending stocks unchanged from the previous month, while it pegged wheat ending stocks lower. The Grain Market Insider newsletter by Stewart-Peterson Inc. noted that the USDA’s unchanged corn balance sheet led to long liquidation, pressuring corn futures lower.
For soybeans, improving weather conditions in Argentina combined with a neutral WASDE report pushed futures prices lower on Tuesday. Regarding wheat, the newsletter stated that while a slight reduction in wheat ending stocks was noted in the WASDE report, it wasn’t enough to drive a rally, with declining corn and soybean prices adding further pressure to the wheat market.
Cattle and Hogs Show Mixed Performance
In the livestock sector, April live cattle finished down $2.13 at $196 per hundredweight (cwt), while March feeder cattle dropped $3.35, closing at $264.78 per cwt. Conversely, April lean hogs saw an uptick, gaining $1.35 to end the day at $92.98 per cwt.
Energy Markets and Stock Futures
In the energy markets, March crude oil prices rose by 86¢ to settle at $73.18 per barrel. Meanwhile, stock futures showed mixed results, with March S&P 500 futures edging up by 4 points, while Dow futures rose by 142 points, signaling positive sentiment in the broader markets.
Pre-WASDE Market Activity
Ahead of the USDA’s WASDE report, grain markets had shown some positive movement. Just after 8:30 a.m. CT, March corn was up 1½¢ to $4.93 per bushel. March soybeans gained 2½¢, trading at $10.52 per bushel. March wheat contracts were also higher, with CBOT wheat up 5¢ to $5.84½ per bushel, KC wheat rising 2¾¢ to $5.99½ per bushel, and Minneapolis wheat gaining 2¼¢ to $6.27½ per bushel.
Arlan Suderman, chief commodities economist at StoneX, commented on the market’s focus on the USDA’s report, predicting possible cuts to Russian wheat exports and an increase in U.S. corn exports, along with potential adjustments to South American production estimates. Despite these expected modest changes, Suderman warned traders to remain cautious, as the USDA sometimes delivers unexpected updates.
In livestock, early morning trading saw April live cattle down 45¢ at $197.68 per cwt, March feeder cattle down 73¢ at $267.40 per cwt, and April lean hogs up 48¢ at $92.10 per cwt. In the energy sector, March crude oil had risen by $1 to $73.32 per barrel.
The U.S. Dollar Index saw a decline, dropping to 108.02, while stock futures showed a downturn, with March S&P 500 futures down by 21 points and March Dow futures down 132 points.
