By: NATHAN STUEDLE
GRAINS:
December corn closed down 6 1/2 cents and March corn was down 6 1/2 cents. January soybeans closed down 26 3/4 cents and March soybeans were down 24 1/2 cents. December KC wheat closed down 17 3/4 cents, December Chicago wheat was down 19 1/4 cents, December Minneapolis wheat was up 3/4 cents.
Both financial and agricultural markets faced widespread selling pressure on Thursday with several moving parts to point to as a source of general nervousness across the trade. First, row-crop futures had become very overbought in the short term from a technical perspective with momentum based indicators likely piling into sales as prices turned lower throughout Thursday morning. Second, futures traders tend to want answers now rather than later and with the government shutdown it is very difficult to gauge if China has been buying U.S. soybeans and to what degree and the rapid growing expense of U.S. soybeans on an FOB port basis may have at last caught up with the futures market on Thursday. In other news, Wednesday's hearing by the Supreme Court regarding the legality of the Trump administration's sweeping tariffs has added a layer of volatility to the market, although a decision is still pending in regard to that.
LIVESTOCK:
The live cattle complex traded mixed into Thursday's noon hour, and then went to the downside by the closing bell. As traders would like to trade the contracts higher and successfully did so in the deferred months, but the nearby contracts remained under light pressure as there was still some uncertainty milling throughout the marketplace, and ended up getting the better of the market. No new cash cattle trade has developed today, but packers will need to secure more inventory before the week's over. So far this week Northern dressed cattle have traded at mostly $360, which is $2.00 higher than the previous week's weighted average, and Southern live cattle have traded at mostly $232, which is $4.00 lower than last week's weighted average.
The live cattle complex was able to shake the doggishness of the marketplace for a short time, but the feeder cattle complex wasn't as confident as all of its contracts are trading lower into Thursday's closing bell. Unfortunately, feeder cattle sales could likely soften a tick in the countryside as buyers react to the board.
Again today, the lean hog complex was adding another downward leg to its chart as the market lacks support. Yes, cash demand was strong this week, but without consumer demand improving, traders aren't willing to show the complex much interest or support.