By: NAHAN STUEDLE
St. Joseph Post
GRAINS:
July corn closed down 6 1/4 cents and December corn was down 1/2 cents. July soybeans closed down 2 cents and November soybeans were up 2 3/4 cents. July KC wheat closed down 8 1/2 cents, July Chicago wheat was down 1 3/4 cents, July Minneapolis wheat was down 7 3/4 cents.
The market received an early shot of adrenaline Wednesday when it was reported that the U.S. and China will officially kick off trade negotiations later this week when parties from both nations will meet in Geneva, Switzerland. Agricultural and financial markets alike will be keeping close tabs on the talks for clues on the next stage of the 2025 trade war. Strength in U.S. grains and oilseed markets faded through the morning as traders remain in favor of liquidation with the May USDA data drop just days away. By the close, most U.S. markets had slipped lower with the exception of new-crop November soybeans, which managed to hold on to small gains amid the China related headlines. In outside markets, all eyes were again on the Federal Reserve, which again decided to hold rates steady amid ongoing inflation concerns in what was a widely predicted outcome. Fed Chair Powell's comments Wednesday afternoon will undoubtedly have the market's attention.
LIVESTOCK:
After reaching new contract highs yet again just Tuesday, and following the light business that took place in the South at $218 to $220 which is steady to $2.00 higher than last week's weighted average, traders have grown cold to the live cattle complex as all its contracts traded lower into Wednesday's close. More than anything it seems as though traders are cautious about overly supporting the complex more than they already have; traders could also be waiting to see what happens in the North for fed cash cattle trade. At this point only a few more cattle have sold in Texas for $219 which is steady with Tuesday's business, but otherwise no more cattle have sold. Asking prices in the South are noted at $220-plus but are still not fully established in the North.
Following in the same direction as the live cattle contracts, the feeder cattle market was trending lower into Wednesday's close. And just like the live cattle complex, this lower move doesn't seem to be because of any rationale other than because traders are worried the market is overbought.
Without any rip-roaring, wild support stemming from the market's fundamentals, it's no surprise to see the lean hog complex trading lower again, just the July contract managed to finish slightly higher. And while pork cutout values may be up slightly, it currently isn't enough to help boost the morale of traders as their tone and sentiment was set on trading lower.
Click HERE for audio