By: NATHAN STUEDLE
GRAINS:
December corn closed down 3 1/2 cents, March corn was down 3 1/4 cents. November soybeans closed down 2 cents and January soybeans were down 2 1/2 cents. December KC wheat closed down 4 3/4 cents, December Chicago wheat was down 7 1/2 cents, December Minneapolis wheat was down 13 cents.
Corn and wheat markets slipped lower again Wednesday, with wheat breaking back toward calendar year lows for most active futures after a disappointing technical close Tuesday, adding pressure to the corn market as well. Soybeans in the meanwhile were cautiously higher for most of the morning after a dry August for the southern and eastern reaches of the Belt seemingly supported attempted selloffs. But eventually general weakness across ag markets, specifically in soybean oil and soybean meal, was ultimately too much for soybeans to trade counter to. Meanwhile, energy markets got a boost Wednesday as a result of the 50% U.S. tariff on India going into effect in response to India's purchasing of Russian oil. Wednesday morning's EIA Petroleum Status Report also showed a weekly drawdown in U.S. crude, gasoline, and diesel stocks. U.S. equity markets have climbed at midweek ahead of key earnings results.
LIVESTOCK:
Almost seeming to double down and show all its power and might, the live cattle complex jolted higher through Wednesday's early trade. The market sold off and came right back in a matter of minutes to finish higher on the session. Wednesday's move comes somewhat as a surprise because midday boxed beef prices were lower, and the fed cash cattle market hasn't seen any cattle trade just yet. So, while I'd typically point to the market fundamentals for reason, today's powerful move is seeming to be a decision made solely based upon the market's technical position as traders continue to respect the long-term bullishness of the cattle complex. A single bid is currently on the table in Nebraska at $245, but still no cattle have traded. Southern asking prices are firm at $243 but are still not established in the North. Trade will likely be delayed until Thursday or Friday.
The feeder cattle complex took on the same rallying mannerisms of the live cattle market as traders continue to show respect and give credence to the market's unwavering, long-term fundamental position. I do think it's worth noting that again today the contracts that are seeing the biggest gains are the deferred months as traders are realizing that supplies aren't going to become greater any time soon.
Keeping with the same gusto it possessed Tuesday, the lean hog complex was thriving as the market neared Wednesday's closing bell. And again today, the market can't point to its fundamentals as support as both cash prices and pork cutout values were lower; so instead, today's energy is solely being driven by eager traders who see an opportunity.