By: NATHAN STUEDLE
GRAINS:
March corn closed up 4 cents and May corn was up 3 1/4 cents. January soybeans closed down 4 1/2 cents and March soybeans were down 3 cents. March KC wheat closed up 2 3/4 cents, March Chicago wheat was down 3 1/4 cents, March Minneapolis wheat was down 3 cents.
It was another mixed to bearish session for U.S. row crops on Wednesday as South American weather bears continue to lead liquidation efforts in the soybean complex, although prices ultimately found interested buyers over the last couple of hours of trade and are oversold from a technical viewpoint. Meanwhile, corn futures found support when March prices fell below the 100-day moving average on Tuesday, rebounding to recapture those losses Wednesday. Wheat markets in the meanwhile fell to new lows in Chicago and Minneapolis. Energy markets turned higher from early 2021 lows set on Tuesday, going largely ignored in the ag sector other than positive influence on corn futures, especially following a mostly positive weekly ethanol report from the Energy Information Administration (EIA). Equities were again weaker on Wednesday as well on profit-taking following last week's surge to a new record for the Dow Jones Industrial Average.
LIVESTOCK:
After rallying throughout Tuesday's trade, the live cattle complex has again settled to trade lower as the resistance at the market's 100-day moving average simply remains too stiff of a barrier to challenge at this point. Are you seeing the trend in the market right now? One day the market rallies and trades higher, but then on the next day, it steps lower as traders don't believe that either they possess enough support or that it's the right time to challenge the market's resistance. Either way, the complex is trading merely steady, holding a position just below the 100-day moving average. No cash cattle trade has developed yet. Boxed beef prices are lower: choice down $1.96 ($356.92) and select down $0.26 ($348.84) with a movement of 91 loads (72.72 loads of choice, 7.09 loads of select, zero loads of trim and 11.61 loads of ground beef).
After closing above the market's resistance at its 100-day moving average, the feeder cattle complex is tradeda tick lower into Wednesday's close. The market still remains above that threshold, which is significant. With the live cattle contracts trading lower, it was not surprising to see the feeder cattle contracts dip back below the market's resistance at its 100-day moving average.
The lean hog complex got back to trading lower as the market remains nervous to trade any higher following the substantial gains made last week. Given that the market is just days away from Christmas, it's likely that a slower, lower trend could develop in the lean hog complex.