Grain futures surged on Tuesday, with soybeans leading the rally following the release of the USDA's November crop production and supply-and-demand reports. Soybean futures saw significant gains, with November contracts climbing 42¼ cents to settle at $12.24½ per bushel. January, March, May, and July soybean futures also posted strong advances, pushing prices above the $12 mark and reversing recent concerns about large domestic supplies and international competition. Soybean meal futures followed the upward trend, with December meal gaining $5.80 to settle at $326.50 per ton.
Corn futures also posted impressive gains, with December corn climbing 9¾ cents to settle at $4.49 per bushel. March, May, and December 2027 corn futures all saw increases, reflecting the broad-based rally in grain markets. Wheat futures joined the rally, though gains were more modest, with December Chicago soft red winter wheat advancing 4¾ cents to settle at $5.92¾ per bushel. Kansas City hard red winter wheat and oat futures also finished higher.
Cattle futures continued their recovery on Tuesday, with live cattle and feeder cattle extending Monday's gains. December live cattle gained $3.00 to settle at $219.20 per hundredweight, while feeder cattle futures saw gains across all contract months. November feeder cattle climbed $2.00 to settle at $330.35 per hundredweight. The cattle market's recovery is notable given the recent rally in corn prices, which could increase feeding costs. Historically tight cattle supplies remain a key factor for market participants.
Lean hog futures finished mixed, with nearby contracts slipping slightly while several deferred contracts posted modest advances. December lean hogs declined 7½ cents to settle at $55.80 per hundredweight, while April, May, June, and July hog futures saw gains. The livestock markets' recent recovery will depend on factors such as cash cattle negotiations, wholesale beef and pork values, export demand, and rising grain prices.