By: NATHAN STUEDLE
GRAINS:
March corn closed up 7 cents and May corn was up 6 1/4 cents. January soybeans closed up 6 3/4 cents and March soybeans were up 6 cents. March KC wheat closed up 1 3/4 cents, March Chicago wheat was up 1 1/4 cents, March Minneapolis wheat was down 2 1/4 cents.
Row-crop futures posted respectable gains in a breakout session from what had been a narrow range for prices through the holiday week. Seasonality is certainly on the side of the bulls for now as traders also are anticipating U.S. production estimates will fall again from November figures when USDA revisits the supply side of the balance sheet in January. Meanwhile, strong demand ideas are working to keep a floor under prices as well. Outside markets for Wednesday saw firmer equities as indices are heading toward a retracement of last week's AI bubble fear induced selloff. Energy prices were mixed with crude oil futures higher but among 2025 lows, and diesel prices continuing to fall sharply from last week's highs.
LIVESTOCK:
Wednesday's rally in the live cattle complex could be in part due to the interview that Lonesome Lands shared with Agriculture Secretary Brooke Rollins. A couple of major points were discussed in the interview: Rollins stated that when the U.S.-Mexico border reopens, not all ports will reopen at once and that "you will not see 1 million head of cattle show up overnight, it's going to be a slow and gradual process." Rollins also stated the port in Arizona is likely to reopen first as it's furthest away from any detected New World screwworm. Rollins also stated there's not an ag industry that she's more bullish about than cattle. No new cash cattle trade has been reported, but bids are on the table in Kansas at $215. On Tuesday, some trade developed in the North at $330, which is $15.00 lower than last week's weighted average. Although there have not been many cattle traded in the South, a handful of deals were marked at $215, which is $7.00 to $9.00 lower than last week's weighted average. Boxed beef prices are mixed: choice down $1.45 ($368.64) and select up $2.55 ($358.48) with a movement of 115 loads (76.90 loads of choice, 10.97 loads of select, 12.76 loads of trim and 14.74 loads of ground beef).
The feeder cattle complex also traded notably higher (mostly $7.00 to $8.00 higher) as the market is pleased to hear positive news from Ag Secretary Brooke Rollins. So long as the live cattle contracts continue to trade higher through Wednesday's close, it's likely feeder cattle contracts will as well.
The lean hog complex also traded higher as the market is pleased to note a slight bump in pork demand and is likely receiving a little extra spill-over support from the cattle complex. Packers have made it bluntly clear that they don't need many hogs this week.