GRAINS:
Row crop markets were two sided on Wednesday as corn and soybean futures pressed into new highs for their move before traders stepped in to take profits on long positions. Producer selling likely played a role as deferred corn contracts surpassed the $5.00 mark on May and July contracts, a level which I would imagine was lined with sell target orders. Fundamental drivers were lacking for the most part Wednesday, but the pace looks to pick up later in the week with the release of South American crop updates on Thursday and Friday. March corn closed down 5 3/4 cents and May corn was down 5 3/4 cents. March soybeans closed down 11 1/4 cents and May soybeans were down 9 1/2 cents. March KC wheat closed down 3/4 cents, March Chicago wheat was down 4 3/4 cents, March Minneapolis wheat was up 2 cents.
LIVESTOCK:
Live cattle futures have rebounded from early-week pressure with triple-digit gains in all contract months. Spot-month February futures lead the upward market shift with gains of $3.00 per cwt as traders managed to finish above the $200 per cwt price level at the close. Feeder cattle futures quickly followed the renewed market momentum seen in live cattle futures. This allowed for significant gains, although most of the focus has surrounded the March contract, which posted gains more than $4 per cwt through much of the morning and closing close to $6 higher by the closing bell. Lean hog futures were mixed in a narrow trading range early Wednesday morning. The active, triple-digit gains in cattle futures seem to have diverted most of trader attention and energy away from the lean hog complex, although some late-day market activity lead to all contracts finishing in the green.
