GRAINS:
May corn closed down 9 1/2 cents and July corn was down 9 1/2 cents. May soybeans closed down 10 3/4 cents and July soybeans were down 10 cents. May KC wheat closed up 1 cents, May Chicago wheat was down 2 3/4 cents, May Minneapolis wheat was down 3 cents.
USDA reports can have a tendency to be what the viewer makes them, meaning if one looks hard enough the bearish trader can find bearish aspects and the bullish trader can find bullish aspects in line with their own market bias. It is then the market's job to sort out the tug of war between the two sides. Tuesday's WASDE was perhaps no better example of this, as despite fairly benign estimates from the USDA which didn't really offer any new insights to the market, corn and soy futures have plunged to double-digit losses since the release.
It sure seems now that bullish traders who already had their confidence shaken by the late February selloff, were needing much more obviously bullish adjustments from the USDA to continue their buying spree at least in the short term. The bottom line is that the fundamental outlook for U.S. row crops is pretty much the same today as it was Tuesday morning, with the exception of perhaps wheat which did receive a more bearish forecast for old crop. It will be interesting to with all three commodities nearing long-term support points, if traders choose to shrug off Tuesday's report and search for bargain buying opportunities.
LIVESTOCK:
Upon seeing the equity markets trading higher and the continued support of stronger boxed beef prices, the live cattle complex is back in action trading higher into Wednesday's close. The timing of the market's higher climb is ideal for the cash cattle complex too as some early bids have surfaced in the South at $200, but feedlot managers aren't impressed with the packer's attempt to get cattle bought at those levels. With asking prices firm in the South at $202 plus, the board now trading higher and boxed beef prices holding strong, feedlot managers are likely going to hold out until later in the week in hopes of stronger cash prices.
The market's resistance at $278.00 didn't seem to stand a chance at holding the feeder cattle complex back Wednesday as the contracts traded $2.00 to $3.00 higher. As always when the market breaks through a critical resistance plane, it will be important to see if traders keep the market's momentum, and if they can, what they elect to do on Thursday. But so long as the market's fundamentals remain supportive, traders may be able to maintain their bullishness.
The lean hog complex traded mixed as traders aren't pleased with the fact that morning pork cutout values were lower. As the market chops merely sideways (seeming to wait for demand to perk back up) traders are pressuring the spot April contract while they let the rest of the nearby contracts trading just mildly higher.
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