GRAINS:
Row-crop markets received a late-week boost, mainly led higher by wheat markets that are firming on adverse weather prospects for both the Northern Plains and Black Sea areas. Meanwhile corn and soybean prices also firmed Friday, with the former again challenging upside resistance. Outside markets Friday were mixed but a mostly positive influence on ag commodities, mainly due to an increasingly softer U.S. Dollar Index, which has not retraced back to its lowest reading in two months. A reminder that U.S. grain markets will be closed on Monday, Feb. 17 in observance of Presidents Day. March corn closed up 2 3/4 cents and May corn was up 2 3/4 cents. March soybeans closed up 6 cents and May soybeans were up 5 3/4 cents. March KC wheat closed up 23 cents, March Chicago wheat was up 22 1/4 cents, March Minneapolis wheat was up 17 1/4 cents.
For the week:
March corn closed up 8 3/4 cents and May corn was up 8 1/4 cents. March soybeans closed down 13 1/2 cents and May soybeans were down 12 3/4 cents. March KC wheat closed up 17 cents, March Chicago wheat was up 17 1/4 cents and March Minneapolis wheat was up 6 1/4 cents.
LIVESTOCK:
The live cattle complex is trailed lower into Friday’s close, as the market has seemed to stall. Trader’s slight energy they possessed on Thursday stalled, and there’s been virtually no more business in the cash cattle market either. More than anything, after a week of continued pressure, the market seemed to be looking forward to the long weekend. The feeder cattle complex petered out as the market wasn’t traded nearly as aggressively as it was on Thursday. And with the live cattle contracts trading lower as well, the market couldn’t change its direction ahead of today’s close. But what we need to monitor is whether or not the spot March contract stays below its 40-day moving average. A close below that threshold isn’t a good technical sign, and currently, the market is hovering right at that threshold. The lean hog complex has also seemed to pause its momentum after rallying robustly on Wednesday. With traders merely letting the contracts drift into Friday’s afternoon it’s not seeming as though they regret their decision to surpass long-term resistance earlier in the week, but instead that they’d like to reassess the market next week and determine how much immediate upside the market holds now. It is positive to see pork cutout values higher, as traders desperately need to continue to see strong consumer demand domestically and abroad.
