GRAINS:
May corn closed up 9 1/4 cents and July corn was up 9 cents. May soybeans closed up 4 3/4 cents and July soybeans were up 5 1/4 cents. May KC wheat closed up 19 1/4 cents, May Chicago wheat was up 14 1/2 cents, May Minneapolis wheat was up 13 cents.
U.S. row-crop futures rebounded again on Wednesday, slowly recovering losses from Monday’s rout. Grains led the way Wednesday with wheat showing particular strength on compounding bullish influence from rising energy market risk as attacks against energy infrastructure have ramped up this week across the Middle East, as well as a conditions outlook which is growing more concerning for U.S. hard red wheat amid widespread drought. Soybeans joined the rally, with most of the upside momentum occurring in deferred futures, as old-crop prices remain subdued by Monday’s shift in trade sentiment. In other news, the Federal Reserve voted on Wednesday to hold interest rates steady, a move which was widely anticipated given the inflationary effects of a shock to energy markets.
LIVESTOCK:
After trading higher over the last two days, the live cattle complex was trading softly lower into Wednesday’s close and managed to finish barely in the green, as the market longs to see affirming fundamental support before it will likely push the contracts any higher. Some bids surfaced in Nebraska at $232 live and $368 dressed — but at this point no cattle have traded. Asking prices are noted in Texas at $238 to $240 but are not fully established in other regions. Trade will likely be delayed for another day or two and, depending on how confident feedlot managers feel, trade could be delayed until after Friday’s Cattle on Feed report.
To no one’s surprise, the feeder cattle complex was also trading lower as the market continues to mirror the actions of the live cattle market. And while they didn’t finish in positive territory, they contracts were all well off of session lows and all less than a dollar lower. Even though demand was noticeably stronger in sales on Tuesday, the market will likely continue to respect the direction of the live cattle market despite the fact that buyers are being more aggressive in the countryside as traders don’t want to overdo anything.
Although pork cutout values were up slightly, the lean hog complex continued to trade slightly lower for the bulk of the session and finished the day narrowly mixed, as traders yearn to see greater fundamental demand. The market seems to be establishing a bottom for its current move, but it doesn’t possess enough support to rally beyond a steady/mildly lower position.
