By: NATHAN STUEDLE
GRAINS:
December corn closed up 2 3/4 cents and March corn was up 2 3/4 cents. November soybeans closed up 8 1/4 cents and January soybeans were up 7 3/4 cents. December KC wheat closed up 3 cents, December Chicago wheat was up 6 1/2 cents, December Minneapolis wheat was up 2 cents.
Grain markets traded higher on Thursday as traders continue to keep corn and soybean prices within their weekly ranges ahead of USDA's September WASDE report due out Friday at 11 a.m. CDT. The soybean market in particular led the charge higher on Thursday, erasing the results of the previous two lower sessions. Outside markets on Thursday were mixed with softer energy markets, but equities surging to new records. Consumer Price Index data for August painted a picture of much more concerning inflation as compared to the PPI released on Wednesday. Meanwhile, jobless claims were a four-year high on Thursday, which could potentially set up a dichotomy when the Federal Reserve meets next week to decide on interest rates. I'd also like to point out in Wednesday's comment, I mistakenly pointed to the PPI data as the Fed's "preferred inflation gauge," which is actually the Personal Consumption data due out later this month, not the PPI data as I had mistakenly alluded to.
LIVESTOCK:
Again today, the live cattle complex stepped forward and traded higher as traders seem to agree that the market has seen enough downward pressure for the time being. Thankfully, again today we see that trades moved the contracts away from the market's 40-day moving average, which thankfully is happening because a close below that threshold would likely signal more downward pressure. Although there are again bids beginning to renew in the countryside, no new trade has developed. So far this week Northern dressed cattle have traded from $375 to $378, which is $5.00 to $8.00 lower than last week's weighted average. Asking prices for cattle left to trade remain firm at $243 in the South and $378 plus in the North.
Thankfully, the feeder cattle complex has now also found support as all of its contracts traded well over $1.00 higher. It's the market's nearby contracts that traded above $2.00 higher, while most of the deferred contracts are just trading $1.00 to $1.70 higher into Thursday's closing bell, but luckily, the gloomy pressure that rested above the market on Tuesday and Wednesday has seemed to fade away.
It's been noteworthy day for the lean hog complex as the market has found enough support to gingerly break above its resistance at $97.00 in the spot October contract. But surprisingly, this seems to be a move being made by traders alone, as the market isn't lending much fundamental support, the day's export report wasn't that fruitful and midday pork cutout values were lower.