By: NATHAN STUEDLE
GRAINS:
March corn closed down 1 1/4 cents and May corn was down 3/4 cent. March soybeans closed up 1 1/2 cents and May soybeans were up 2 cents. March KC wheat closed up 8 cents, March Chicago wheat was up 9 cents, March Minneapolis wheat was up 2 cents.
Row-crop trade was quiet at midweek with wheat futures leading the way higher after successfully holding above trendline support early in the week. Meanwhile, soybeans recovered from early losses to extend the rally while corn futures were sluggish despite larger-than-expected cuts to U.S. stocks in Tuesday's WASDE report, with a seven-year high forecast for reserves still weighing on price potential. Outside markets leaned mostly positive with firm energy markets amid lingering geopolitical risks as negotiations continue between the U.S. and Iran regarding the latter's nuclear program. In other news for Wednesday, January jobs data was much better than expected, with a cut to the unemployment rate and a surge in job creation. This in turn pressured Treasuries and raised yields as the slowing job market through the final few months of 2025 had been an argument for lowering interest rates.
LIVESTOCK:
It's almost as if the overarching theme in the live cattle complex as we headed into Wednesday's noon hour was, "Why are we waiting around? We know the market's direction is higher." So where does all this support come from this morning? Good question, because boxed beef prices were mostly lower, there's yet to be any trade in the fed cash cattle market, and the equity markets aren't doing anything that would justify trading notably higher. But if there's one thing we know and understand about the livestock complex, it's that it is an anticipatory market. If traders think the market is bound to trade substantially higher, one may ask, "Why not today?" and they followed through finishing fully higher. Still no trade has developed in the fed cash cattle market and both bids and asking prices remain elusive at this point. Boxed beef prices are mixed: choice down $0.41 ($367.14) and select up $1.19 ($364.09) with a movement of 53 loads (45.12 loads of choice, 3.38 loads of select, zero loads of trim and 4.62 loads of ground beef).
Upon seeing the live cattle contracts trading higher, it didn't take much convincing to get the feeder cattle futures to move higher also. Sales have been noticeably stronger this week in the countryside for both feeder cattle and calves as supplies remain incredibly thin.
Meanwhile the lean hog complex is the same story Wednesday that it's been over the last couple of days as the market continued to scale lower. And with pork cutout values down slightly, the market won't likely change its direction until that is corrected.