GRAINS:
May corn closed up 4 3/4 cents and July corn was up 4 1/4 cents. May soybeans closed down 2 cents and July soybeans were down 2 1/2 cents. May KC wheat closed up 16 1/2 cents, May Chicago wheat was up 15 1/4 cents, May Minneapolis wheat was up 11 cents.
It was another mostly positive session for price action across U.S. row-crop futures, with a surge in wheat helping corn to reverse from early losses to trade higher as well. Soybeans drifted a touch lower but well off their lowest point by the close as buyers remain active and looking for opportunity on dips. Outside markets saw energy prices creep higher yet again, with WTI crude oil higher for the tenth time in the past 11 sessions, closing in on the $100 per barrel mark. The U.S. dollar was higher after the January Personal Consumption Expenditure report showed the highest reading in almost two years, adding more doubt to a near-term rate cut from the Federal Reserve, especially considering January data is well before the energy shock as a result of the conflict in the Middle East. CME’s FedWatch tool is currently predicting steady rates until the October FOMC meeting.
LIVESTOCK:
The live cattle complex was mildly lower headed into Friday’s close as traders are again allowing the complex to find very little technical support. Currently the spot April contract is trading above its 100-day moving average; monitoring that threshold into early next week will be vital as traders may not keep the complex above that price-point as there’s not much fundamental support in the market. No new cash cattle trade has developed, but a single bid was on the table at $235 in Kansas. So far this week, Northern dressed business has been done at mostly $372, $8 lower, and Southern live business was done at mostly $235, $4 lower in Texas, and $5 lower in Kansas. It’s likely trade volumes will remain light this week as there’s expected to be a plant strike starting on Monday at the JBS plant in Greeley, Colorado.
The feeder cattle complex was mixed moving into Friday’s closing bell, as traders seem confident allowing the contracts to scale mildly higher even though the market’s fundamentals haven’t been overly supportive this week. But at the day’s end, it wouldn’t be surprising to see the market again slip below its 100-day moving average next week as it is expected to face challenges with the potential plant strike in Colorado.
The lean hog complex was again trading lower. Although pork demand may be up slightly, the market doesn’t have the technical support it needs. Helping drive the pork cutout values higher is mostly the $9.02 jump in the belly.
