GRAINS:
Ag markets in general were mostly firmer Tuesday, led yet again by a powerful livestock sector. Grain markets were also mostly higher with nearby soybeans being the exception, although soy prices did manage to hold support in a very thin trade with not a lot in the way of fresh fundamental drivers. Outside markets Tuesday were mostly mixed as equity markets advanced with the Dow Jones Industrial Average having overcome all of its late 2024 losses and is again challenging all-time highs set in early December. The U.S. Dollar Index was slightly higher, while interest rates were steady to just slightly higher as well. March corn closed up 3 1/4 cents and May corn was up 3 3/4 cents. March soybeans closed unchanged, 0 cents and May soybeans were up 1 cent. March KC wheat closed up 7 3/4 cents, March Chicago wheat was up 9 3/4 cents, March Minneapolis wheat was up 11 1/4 cents.
LIVESTOCK:
Cattle futures opened higher Monday and extended the gains through the session to new contract highs. The friendly Cattle on Feed report fueled the fire for higher prices. Feedlots will hold for high cash again this week. Packers have lost control over the market and would need to cut slaughter drastically to avoid paying higher cash for cattle. This is not likely as boxed beef was up strongly with choice gaining $2.16 and select up $4.26. Demand is strong and the packers need to meet it. The packers continue to purchase some cattle for deferred delivery but have not purchased a sufficient supply and continue to pay more for cattle. Hog futures closed higher through the session. Trader optimism is bullish and is carrying the market despite limited support from the underlying cash and cutouts.
