By: NATHAN STUEDLE
GRAINS:
September corn closed up 6 cents and December corn was up 6 1/4 cents. August soybeans closed up 9 cents and November soybeans were up 5 1/2 cents. September KC wheat closed up 9 3/4 cents, September Chicago wheat was up 10 3/4 cents, September Minneapolis wheat was up 12 cents.
Corn, soybean, and wheat markets moved higher Wednesday to begin July, as prices continued to bounce from multi-month lows hit earlier this week. While Tuesday's USDA data wasn't explicitly bullish, sometimes the market's worst fears lie in anticipation, and simply having the estimates out can be a weight off prices. Wheat, however, did benefit from bullish USDA figures on Tuesday, with 2026 acreage falling yet again. In outside markets, WTI crude futures fell once again, but still hover just above the pre-war levels from late February. Equity markets were higher with the Dow Jones Industrial Average at another record. Meanwhile, the U.S. Dollar Index rose for a second straight session and remains among the highest levels of 2026 thus far.
LIVESTOCK:
Live cattle futures have firmed slightly at midweek, although the tone and activity of the entire cattle complex -- and especially the live cattle market -- seems cautious at best. Following the strong market move lower over the past couple of weeks, traders remain concerned about the ability to sustain beef values and product support through the last summer and fall months. At this point, the ability to move additional domestic product at higher price levels this year has gone well. But the underlying concern remains about the economy, whether consumers will start cutting budgets, and where the first and most drastic cuts will be seen. This is leading factor for the recent market volatility in both feeder cattle and live cattle futures over the past couple of months. Cash cattle markets remained generally undeveloped Wednesday morning. A few bids are now on the table in parts of eastern Nebraska, but asking prices remain very elusive; the rest of cattle country remains very quiet. Packer inquiry should continue to improve as the day progresses. It is expected that both sides will try to wrap things up before Friday and extend the holiday weekend. But for now, there is likely to be a wide gap to close before any significant trade can be agreed on.
Feeder cattle futures were leading the cattle market and entire livestock complex higher Wednesday morning as traders are covering previous losses seen at the end of June. Although very little has changed fundamentally or technically in the market over the past couple of days, the fact that traders are working on a new month and quarter of books has in itself helped spark some buyer support back into the complex. All nearby contracts couldn't hold the gains of $2 per cwt or greater at midday and finished only softly lower. With markets closed Friday for the Fourth of July holiday, and overall trade interest subdued through the entire week due to holiday and vacation schedules, it is not surprising that overall market participation has been limited during the entire week.
Lean hog futures were mostly higher Wednesday, although limited interest and new market information as the session continued eroded a portion of early support. Mixed trade with light pressure in nearby contracts is being offset by light to moderate buying activity very slowly trickling into deferred contracts. Traders seem to be finding some underlying support at current price levels, although prices are still well below the 40-day moving average in all nearby contracts. The longer-term concern about expanded pork demand and the ability to open up increased export trade continues to be the biggest shadow hovering over the market heading into July.