GRAINS:
March corn closed down 6 1/2 cents and May corn was down 6 3/4 cents. January soybeans closed down 9 cents and March soybeans were down 9 1/2 cents. March KC wheat closed down 3 1/2 cents, March Chicago wheat was down 2 3/4 cents, March Minneapolis wheat was down 4 1/2 cents.
Corn, soybean, and wheat markets fell under technical pressure as the state of post-harvest rallies has entered a period of limbo with traders likely searching for clarity on lingering fundamental questions such as the supply side of the corn balance sheet, as well as the uncertain nature of the demand for U.S. soybeans in China. Prices may remain range-bound but below immediate resistance ahead of the December USDA update due out early next week which may offer insight into some of these areas of concern. Outside markets for Wednesday saw equities trade higher, with the Dow Jones Industrial Average higher now in eight of the past ten sessions and once again closing in on record levels. The U.S. Dollar Index was softer for the seventh time in the past eight business days and remains at the bottom of the monthly range for the Index.
LIVESTOCK:
The live cattle complex traded modestly higher into Wednesday’s close, thankful to again see stronger boxed beef prices. The market initially opened lower at Wednesday’s start, but upon seeing improved fundamentals, traders felt as though there was enough support in the market to justify trading the contracts higher. Still no cash cattle trade has developed, but asking prices are noted in the South at $225, and are still not established in the North. It is assumed that cash prices will be higher this week with the uptick in boxed beef prices and with the board’s support. The other factor that could be helping drive the cattle contracts higher is the announcement from Texas Agriculture Commissioner Sid Miller that another detection of New World screwworm (NWS) was found in Montemorelos, Nuevo Leon, Mexico, which is approximately 120 miles south of the Texas border. This development could mean that the border will stay closed longer than assumed.
With the live cattle market’s support, the feeder cattle complex traded over $3.00 higher into Wednesday’s noon hour. It was rather impressive to note some of the sales made Tuesday afternoon at sale barns across the country as some were trading $20.00 to $30.00 higher, with instances as much as $50.00 higher than the week before. That obviously showed up in the CME feeder cattle index as well, which jumped $12.66 to $332.36. Today’s support of the futures contracts should only encourage more buying in sale barns this afternoon.
After enduring a couple days of weaker trade, the lean hog complex was back to trading higher as the market is no longer up against immediate resistance pressure. Helping encourage traders to send the contracts higher is also the fact that pork cutout values are a tick stronger.
