By: NATHAN STUEDLE
GRAINS:
September corn closed up 1/4 cents and December corn was unchanged. August soybeans closed up 10 1/2 cents and November soybeans were up 9 3/4 cents. September KC wheat closed down 14 1/2 cents, September Chicago wheat was down 18 1/4 cents, September Minneapolis wheat was down 15 3/4 cents.
For the Week:
September corn closed up 19 1/2 cents and December corn was up 20 cents. August soybeans closed up 43 1/2 cents and November soybeans were up 50 1/2 cents. September KC wheat closed up 13 cents, September Chicago wheat was down 4 3/4 cents and September Minneapolis wheat was up 22 1/2 cents.
Wheat futures dropped sharply to close the week on rumors that Russia and Ukraine may be exploring options for easing attacks on shipping channels; but likely more to do with traders not wanting to get caught with hefty length over the weekend should news shift ahead of Sunday's reopen. Meanwhile, corn and soybeans remained well supported by the two-week weather outlook which continues to call for above-average temperatures and minimal rainfall for the U.S. Grain Belt. Outside energy markets leaned bearish to close the week as well with traders following the same pre-weekend position squaring playbook, which is so popular during geopolitical driven price moves. The fall in energies to close the week influenced softening interest rates (despite a firm week overall) and subsequent gains in equities to close the week as well.
LIVESTOCK:
It's another mixed day for the live cattle complex as the contracts were trading higher; but there's not been any more trade thus far in the cash market. It's likely with both the monthly Cattle on Feed report and the bi-annual Cattle Inventory report set to be released later this afternoon most of the week's trade could be done with besides a little bit of clean-up business. That could be enlightening for feedlot managers as that may mean packers are going to need more cattle in the weeks ahead. But until we see the actual slaughter data, don't get too excited and put the cart before the horse. So far this week, dressed cattle are trading at mostly $365 (down $12.00 to $15.00 lower from last week's weighted average) and Southern live cattle are trading at mostly $230, which is $7.00 to $8.00 lower than last week's weighted average).
The feeder cattle contracts were also trading mildly higher heading into Friday's close as the market continues to closely mirror the behavior of the live cattle complex. The market will likely keep with this slight rally through the day's end so long as support remains sufficient from the live cattle market.
In keeping in their recent trend, the lean hog complex was also trading higher into Friday's closing bell. This week has been a strong week for the lean hog complex as not only has the market seen greater consumer support, but mix that with ample trader support and it's the best of both worlds.