GRAINS:
Ag markets shrugged off Tuesday’s sluggish session for the most part to trade mixed Wednesday. The rampant buying spree following Friday’s USDA release may have subsided for now, but overall markets still appear to be well supported given current market fundamentals outlined on Friday by the government as well as ongoing weather uncertainty in South America. Outside markets Wednesday were mostly a positive influence on the ag complex as inflation data came in with mixed results. Overall Consumer Price Index (CPI) was still relatively high at 2.9%, year-over-year, but core-CPI, which excludes energy and food costs, was quite a bit cooler. This sparked a rally in equities Wednesday with the Dow Jones Industrial Average up near 700 points for most of the day. March corn closed up 4 1/4 cents and May corn was up 3 1/4 cents. March soybeans closed down 4 3/4 cents and May soybeans were down 6 cents. March KC wheat closed down 3 1/4 cents, March Chicago wheat was up 3/4 cents, March Minneapolis wheat was down 2 cents.
LIVESTOCK:
It was another strong day for the live cattle complex as traders continue to advance the complex with the belief that market fundamentals will remain strong through the week’s end. Although the nearby corn contracts are trading slightly higher, the feeder cattle market continues to rally as traders feel well supported by the live cattle contracts trading higher and upon the continued support of incredible feeder cattle sales in the countryside. The lean hog complex is continuing to grind higher as the market is thoroughly pleased with the uptick of demand that it’s recently seen.
