By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
May corn closed down 6 1/2 cents and July corn was down 6 1/4 cents. May soybeans closed down 3/4 cents and July soybeans were down 1/2 a cent. May KC wheat closed down 4 1/4 cents, May Chicago wheat was down 8 cents, May Minneapolis wheat was down 3 1/4 cents.
Wednesday was a noticeably reserved session across U.S. markets compared to Tuesday's trade. Corn and wheat markets continued to retreat, but with less downward momentum, at least as wheat futures are concerned. Meanwhile, despite finishing the session fractionally lower, soybean futures found buying support as prices retest $10.00 on front-month May futures, a support level which again held. Outside markets on Wednesday were also quiet as stock indices are correcting slightly after a strong last week-and-a-half of trade. The U.S. dollar is bouncing back from Tuesday's down session, attempting to post a fifth positive day out of the past six, which likely caused some pressure in ag markets for Wednesday, particularly for wheat futures.
LIVESTOCK:
After a couple of days of downward pressure, the live cattle complex was again trading higher as the market is no longer up against immediate resistance pressure. Trades are lower noting the continued support of stronger boxed beef prices but are patiently waiting for the cash cattle market to show its hand this week. If prices are again higher, then there's an argument to be made that the contracts could potentially trade higher. But if boxed beef prices and cash prices aren't both higher this week. It's then most likely the contracts won't pressure the high made just last week.
Seeming to mirror the same behavior as the live cattle market, the feeder cattle contracts were back to trading higher. Demand has been incredible this week again for both feeder cattle and calves, with undeniable demand being noted for cattle that are suitable for grass. Buyers know that the closer time gets to turn out season, the more expensive these types of cattle are going to become.
The lean hog complex also traded higher as traders are pleased to see pork cutout values higher again. The spot April contract isn't confident enough to take on the market's resistance at $88.00, but it's still trading higher nonetheless. There's a chance that packers may not be very aggressive in the cash market the rest of the week as they've already bought a number of hogs.
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