By: NATHAN STUEDLE
GRAINS:
May corn closed up 8 cents and July corn was up 8 3/4 cents. May soybeans closed up 12 1/4 cents and July soybeans were up 12 1/4 cents. May KC wheat closed up 4 3/4 cents, May Chicago wheat was up 3 3/4 cents, May Minneapolis wheat was up 3 cents.
After a brief pause to review underlying fundamentals on Tuesday, markets wasted no time building on their recent bullish trends with another buying spree Wednesday. Once again, soybean oil set the tone rebounding after the first consecutive lower closes for most active futures in over a month to post another high close for the move. Expectations EPA will finalize their biofuel blending mandates this month and those mandates will be very friendly to agriculture is the primary bullish influence, despite USDA cutting soybean oil demand in Tuesday's WASDE. Corn and wheat markets joined in on the rally with soybeans paving the way higher. Outside markets were calmer on Wednesday, with crude oil futures higher but setting lower highs for the second straight session as IEA announced a record 400-million-barrel reserve release to stabilize the market amid the trade choke in the Middle East. Equity markets were lower again on unease regarding the oil situation and its potential impact on the world economy.
LIVESTOCK:
The live cattle complex traded lower from the open, but with new developments surfacing in the fed cash cattle market, where cattle are trading sharply lower than compared to a week ago, there's a slim chance the market will do anything but continue to scale lower through the week's end. Some light cash cattle trade is currently being noted in the North at $372, which is $8.00 lower than last week's weighted average. And a handful of steers have also been sold in Kansas at $235, which is $5.00 lower than last week's weighted average. Asking prices are noted in the North at $374, but are not established yet in the South.
It's was a "bah humbug"-like day for the cattle complex, but especially for the feeder cattle market as its contracts were trading anywhere from $5.00 to $7.00 lower. The onset of weaker market fundamentals in the cash sector is why the feeder cattle complex is trading significantly lower and is currently even pressuring the market's 100-day moving average in the spot April contract.
The lean hog complex also traded lower as a weaker note has overcome the entire livestock complex. And with midday pork cutout values lower, the market was not able to turn around and trade higher ahead of the day's end, and may see follow through pressure in the coming day or two.