By: NATHAN STUEDLE
GRAINS:
May corn closed up 6 1/2 cents per bushel at $4.69 3/4 and July corn closed up 5 1/2 cents per bushel at $4.80 and May soybeans closed up 6 3/4 cents at $11.68 1/2 and July soybeans were up 6 3/4 cents at $11.83 1/4. May KC wheat closed up 1 1/4 cents at $6.27 1/4, May Chicago wheat was up 3 3/4 cents at $6.08 and May Minneapolis wheat was up 6 1/2 cents at $6.43 3/4.
Grain and soy markets began the day with solid gains after multiple key oil and gas hubs were damaged in the Middle East from missile and drone attacks. The attacks drove not only Brent oil but EU natural gas prices higher, leading to concerns over fuel, fertilizer and transportation costs ahead of North American planting.
LIVESTOCK:
Without any sizeable fundamental support having developed, the live cattle complex continued to trade lower. Traders have also noted the slight downturn in boxed beef prices -- which is likely stemming from pushback from retailers as they understand that the U.S. beef cowherd is low and prices are naturally going to creep higher as supplies are lower and demand is high. It's a balancing act that packers are going to have to manage when it comes to pricing the meat as they don't want to hinder demand. Still no cash cattle trade has developed although bids have been offered in Nebraska. At this point it's looking like the bulk of this week's trade could be delayed until after Friday's Cattle on Feed report.
And once again the feeder cattle complex was following the live cattle contract's direction as it too, traded significantly lower. That's not to say that demand has been strong for feeders in the countryside because demand has seen an uptick this past week; but instead this is a technical decision as traders don't want to move in the opposite direction against the live cattle contracts and its trend.
With cash volumes low and pork demand softening, it comes as no real surprise that the lean hog complex was trading lower. It's not likely the market is going to find the level of support it needs ahead of the week's end, and will likely keep with this sideways to slightly lower trend through Friday's close.