By: NATHAN STUEDLE
GRAINS:
May corn closed up 8 1/4 cents and July corn was up 8 cents. May soybeans closed up 9 cents and July soybeans were up 10 1/2 cents. May KC wheat closed up 2 3/4 cents, May Chicago wheat was up 1 3/4 cents, May Minneapolis wheat was up 1 1/2 cents.
Soybean and corn futures moved higher at midweek, recovering from selling pressure to begin the week, with both markets dropping below key chart support in recent session which encouraged bargain buyers on Wednesday. Wheat futures traded lower for most of the morning before rallying back to post a fourth straight higher session on the KC board, still supported by falling crop conditions in the Central and Southern U.S. Plains. News regarding the conflict in the Middle East was slim on Wednesday, with regional countries pushing the U.S. and Iran to extend their ceasefire agreement and restart negotiations. Otherwise, the U.S. blockade of the Strait of Hormuz continues, with the Wall Street Journal reporting that 15 vessels have transited the Strait since Monday, compared to 130 per day on average under normal circumstances.
LIVESTOCK:
Following Tuesday's sizeable rally, once again the live cattle complex mildly retreated as traders look to the market's fundamentals and desperately hope something bullish arises from the cash market later this week when trade develops. More than anything traders are scanning the marketplace, hoping to find some fundamental support that will justify the market's position before too much buyers' remorse sets into the marketplace and the contracts scale back sizably. Still no cash cattle trade has developed but asking prices are noted in Texas at $252 plus, but the rest of the countryside remains idle with only one bid on the table at $248 in Kansas.
Although the feeder cattle complex has been the unwavering market within the livestock complex, trading higher in a carefree fashion, even the feeder cattle complex eased its bullish tone as the contracts were trading fully lower into Wednesday's closing bell. This move is likely happening as traders yearn to see greater fundamental support from the live cattle complex and aren't thrilled with the weakness of the live cattle futures.
Mixed tones were seen throughout the lean hog complex as the nearby contracts scaled lower and some of the far deferred contracts traded mildly higher. And the main reason the midday carcass price was pulled lower is because of a $6.22 decline in the rib and a $6.09 decline in the belly.