By: NATHAN STUEDLE
GRAINS:
September corn closed unchanged and December corn was up 1 cent. August soybeans closed up 3 1/2 cents and November soybeans were up 6 1/2 cents. September KC wheat closed up 10 3/4 cents, September Chicago wheat was up 7 1/2 cents, September Minneapolis wheat was up 1/4 cent.
It was another session featuring futures squaring ahead of Friday's USDA release with row crop markets holding even to slightly higher for the most part. Wheat markets led the way higher, showing some life on the Kansas City board following Wednesday's reversal near contract lows. The thing most traders are anticipating on Friday's USDA release is how traders will react if adjustments are in fact at least temporarily bullish in direction. Given that weather and thus far strong crop conditions have really been the sole focus of bearish traders through the past few weeks, it will be interesting to see if Friday's estimates are taken with a grain of salt.
LIVESTOCK:
The live cattle complex traded mixed into Thursday's close, seeming to again hold its breath until there's an understanding of the direction fed cash cattle prices are going to trade this week. A few bids are on the table at mostly $223 in the South, but a regional packer is currently bidding up to $227. But with asking prices firm in the South at $228 to $230, still no cattle have traded yet. And the North remains incredibly quiet with no bids or asking prices having been posted just yet. Upon seeing that boxed beef prices are lower again today, it's safe to say that the seasonal downward trend of the third quarter for boxed beef prices has been set into motion.
With the USDA's updated announcement that the US border is again closed to Mexican imports, the feeder cattle complex again gained another leg up and traders are continuing to support its higher trend. We know that domestic supplies are tight, and buyer demand remains red hot, which is why traders remain confident in continuing to push the contracts higher.
Pork cutout values may be higher, but the lean hog complex went lower in part due to the slight downturn of exports having a negative impact on trader's minds as the contracts traded fully lower into Thursday's close. The carcass price was realistically able to print higher this morning because of the heavy lifting done by the belly which jumped $4.51 higher, and the ham which jumped $4.24.
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