GRAINS:
Row-crop markets led the ag complex higher Wednesday, with corn and wheat markets leading the way, while soybean markets also posted a double-digit move higher. Following an early week test of chart support, grain markets were able to find follow-through buying Wednesday to again challenge last week’s highs for nearby corn and wheat futures. Outside market influence was again mixed with equity markets lower and the U.S. dollar higher. Although notably the Brazilian real continues to strengthen versus the U.S. dollar after a very weak 2024, reaching its highest point Wednesday since late November. The Brazilian real is highly positively correlated with U.S. soybean futures. March corn closed up 11 3/4 cents and May corn was up 11 1/2 cents. March soybeans closed up 15 1/2 cents and May soybeans were up 15 3/4 cents. March KC wheat closed up 19 1/4 cents, March Chicago wheat was up 17 1/4 cents, March Minneapolis wheat was up 16 cents.
LIVESTOCK:
The live cattle complex has rallied aggressively all week, but at Wednesday’s start, cautiousness poured into the marketplace and remained the theme all session. One could point to the day’s downturn in boxed beef prices as part of the catalyst for today’s weakness, and while that might be adding some pressure to the day, we also seasonally expect boxed beef prices to turn lower during this time as we are a long way away from prime grilling weather. Upon seeing the swift rally in the corn complex, and the cautiousness that arose in the live cattle complex — it comes as no surprise that the feeder cattle contracts traded lower into Wednesday’s close. Higher cash prices, higher pork cutout values, and yes, the lean hog contracts traded higher most of the session, as traders have taken out the resistance at $91.00. With support flowing bountifully to the lean hog complex, traders collectively decided to advance the contracts again through the day. This helped prices surpass the resistance at $91.00, however faded at the close to manage a finish no better than mixed.
