Agriculture Takes Center Stage: Mixed Performance for Corn and Soybeans

US wheat markets experienced mixed results on Tuesday, with Chicago soft red winter wheat futures reaching their highest level in over two months. Kansas City and Minneapolis futures faced downward pressure until July 2024 due to lackluster export demand. Corn and soybean futures mostly saw gains, driven by concerns over potential harvest shortfalls caused by hot and dry weather conditions.

July corn settled at $6.43¾ per bushel, adding 3½¢, while later months showed mixed results, mostly on the positive side. Chicago July wheat increased by 7¾¢, closing at $6.95¾ per bushel. Meanwhile, Kansas City July wheat dropped 6¢, settling at $8.36 per bushel, with higher prices observed for September 2024 and beyond.

Minneapolis July wheat declined by 4½¢, closing at $8.49 per bushel, but similar to Kansas City, prices for September 2024 and beyond were higher. July soybeans showed strength, ascending by 10¾¢ to close at $14.77¼ per bushel, with the exception of the September contract, which experienced a slight loss. July soybean meal decreased by $3.60 to close at $412.80 per ton, while prices for January and beyond were higher. Lastly, July soybean oil saw a minor decrease of 0.06¢, closing at 59.63¢ per pound.

US equity indexes experienced a decline on Tuesday, following Asian and European indices' lead. China's 10-basis-point rate cut did not revive investor sentiment, and focus shifted to Federal Reserve chairman Jerome Powell's testimony. The Dow Jones Industrial Average closed down 0.72%, the Standard & Poor's 500 lost 0.47%, and the Nasdaq Composite dropped 0.16%.

US crude oil futures also experienced a decline on Tuesday, as the expiring July West Texas Intermediate (WTI) light, sweet crude future closed at $70.50 per barrel, down $1.28. The August contract also decreased, closing at $71.19 per barrel with a loss of 74¢.

After a three-day losing streak last week, the US dollar index strengthened once again on Tuesday. US gold futures turned lower, facing a decline after a three-day rally leading up to the holiday week's closure. The June contract dropped $22.90, closing at $1,935.50 an ounce.

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