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Evening markets: cheaper corn raises livestock

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One man's loss is another man's gain. Tuesday's sharp correction for Chicago corn and wheat, after an official report revealed higher-than-expected plantings, was good news for some four-legged consumers of the crops.

Investors in feed cattle certainly took heart, viewing low feed prices - and thereby higher margins - as a harbinger of rising demand for the livestock to feed on it.

Livestock producers "can quit worrying about $8 corn and I think they can quite worrying about $5 corn too", Doug Harper, analyst at Brock Associates, said.

Chicago feed cattle for August added 0.575 cents to 102.30 cents per pound at 18:00 GMT.

And this ebullience spilled over into hogs too, with lean hogs for July up 0.875 cents at 58.75 cents a pound.

'Crying out for correction'

That was a far cry even from most softs markets, with New York sugar for October falling back from an early high of 18.09 a pound - a fresh three year peak for the second contract – to stand at 17.82 cents a pound, down 0.08 cents on the day.

"The market is crying out for a correction lower," a trader told Reuters, the news agency.

While funds have been pouring into sugar, on talk of strong Indian buying, many traders consider prices overcooked.

Coffee also slid, down 0.85 cents at 119.40 cents per pound in New York for September delivery Arabica beans, amid concerns of robust supplies.

Prices in Vietnam, the biggest exporter of robusta beans, are at their lowest for 27 months, although some observers hope that this will help prices by prompting farmers to hold back on sales.

Indeed, London robusta beans pulled back from early lows to close up $11 at $1,335 a tonne.

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