GRAINS:
Grain markets took a breather for the most part on Thursday with the exception of wheat futures which were able to push higher without the negative influence from the soybean complex that held that market in check Wednesday. Overall, it feels like traders are awaiting end-of-week updates from South American agencies on how crops in Argentina have fared over the past week, as well as how harvest/planting is progressing in central Brazil. Outside market influence on Thursday leaned negative with equity markets lower and the U.S. Dollar Index catching itself for at least the moment to snap a two-day weaker stretch. It is also worth noting that the Brazilian real since setting all-time lows in December has posted an impressive turnaround following government intervention there. This has most definitely aided soybeans in their price rally over the past month as well. March corn closed up 2 cents and May corn was up 2 3/4 cents. March soybeans closed up 3 1/2 cents and May soybeans were up 3 1/2 cents. March KC wheat closed up 15 3/4 cents, March Chicago wheat was up 15 1/2 cents, March Minneapolis wheat was up 10 cents.
LIVESTOCK:
Sharp losses once again developed in live cattle and feeder cattle futures as traders continue to wrestle with the impact of potential tariff talk and trade shifts, combined with the overall potential for additional cattle moving into the system from Mexico. Feeder cattle futures are leading the downward shift, with nearby contracts posting $5 to $6 per cwt losses going into the closing bell, creating the expectation for further losses and continued pressure into Friday. Hog futures remain mixed in a narrow range, with the focus squarely on cattle market direction.
