Commodity Markets Rebound from Monday's Rout, but Weather Concerns Linger

Corn futures attempted to recover lost ground on Tuesday after a rout on Monday, when energy markets plummeted. September corn closed up 6.75 cents, while December corn was up 6.5 cents.

August soybeans also rose, closing up 3.5 cents, but November soybeans were only up 6.25 cents. Wheat futures were mixed, with September KC wheat down 2.75 cents, but September Chicago wheat up 2.5 cents and September Minneapolis wheat down 3.75 cents.

The recovery was due in part to the US Department of Agriculture's (USDA) report on Monday afternoon, which showed sizeable cuts to corn, soybean, and spring wheat conditions. However, weather forecasts have shifted, with cooling temperatures and rainfall expected for the Grain Belt region this week.

Outside markets were bearish, with crude oil futures down sharply for a third straight day due to negotiations between Iran, Saudi Arabia, and Oman regarding the future management of the Strait of Hormuz.

Livestock markets also saw gains on Tuesday, with live cattle contracts rallying after Monday's weaker close. The border reopening to Mexican cattle imports on August 24 has been a concern for traders, but it seems that worries have eased. Bids are on the table in Kansas and Nebraska at $228 live and $360 dressed.

Feeder cattle contracts were also up, following the lead of live cattle futures, while lean hog contracts continued to rally due to strong consumer demand.