By: NATHAN STUEDLE
GRAINS:
July corn closed up 7 3/4 cents and December corn was up 8 1/4 cents. July soybeans closed up 18 3/4 cents and November soybeans were up 22 cents. July KC wheat closed up 3 1/4 cents, July Chicago wheat was up 5 1/4 cents, July Minneapolis wheat was up 3 cents.
Corn and soybean markets turned higher on Thursday, enjoying a relief bounce inspired by technical-based buying after an early week fall back toward long-term support, while good weekly export sales data from USDA also fueled upward momentum. Meanwhile, wheat futures remain frustratingly sluggish, with traders at this point ignoring bullish arguments such as a 56-year low for U.S. wheat production and a historic heatwave across Europe. Opting instead for a cautious outlook amid ever easing geopolitical tension and energy market concerns, with harvest of other Northern Hemisphere winter crops just around the corner. In macroeconomic news, inflation data from the Personal Consumption Expenditure reports showed an uptick in May, with the headline rate up to 4.1% and the highest since April 2023. The core rate (less energy and food costs) was also firm at 3.4% annualized inflation. First quarter U.S. GDP was finalized on Thursday at 2.1% annual growth, notably improved from the second revision in May.
LIVESTOCK:
The live cattle complex was trading mostly, but softly higher into Thursday's close, as traders remain on edge waiting to see what's going to develop in this week's fed cash cattle market. Bids are currently on the table in Kansas and Nebraska, but no trade has developed yet. Asking prices of $415 are being reported in eastern Nebraska, but again, no sales have been reported just yet.
The feeder cattle contracts were also trading softly higher as traders simply don't feel comfortable advancing the contracts without the support of the live cattle market. It's been a stellar week in terms of demand for feeder cattle in the countryside. However, today's pullback stems from technical fear that traders may have advanced the contracts too much without first seeing what was going to develop in the fed cash cattle complex.
The lean hog complex traded mixed as the market anxiously awaits what this afternoon's Quarterly Hogs and Pigs report is going to unveil. It appears as though traders are more confident in the market's demand/supply situation later in the year than they are for the meantime, as the deferred contracts are traded mildly higher.