By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
Corn futures were 3 to 6 cents lower at the closing bell with trade fading back to the lower end of the range with softer spread trade. Ethanol margins are expected to continue tracking sideways as well with unleaded firming a bit seasonally to boost blenders. Basis is expected to firm a bit more into early April as fieldwork expands. Double-crop planting in Brazil will wrap up soon with weather looking good for early development.
Soybean futures were 2 to 5 cents lower at the close with oil trying to lead the product complex as we fade back to the lower end of the range as upside remains limited as South American harvest continues to roll forward. South America weather looks to remain cooperative for the finish to the growing season. The daily export wire was quiet as export offers converge for the U.S. and Brazil. Basis is expected to remain flat into the end of the month.
Wheat futures were 5 to 9 cents lower. With trade fading further through nearby support with choppy action continuing with KC the downside leader again Tuesday. Normal to slightly above-normal temps for the Plains this week with better moisture potential for the second week is helping to limit upside as well.
LIVESTOCK:
It's been a disgruntling day for the live cattle complex. Even though we knew the market would likely face some technical pressure this week, seeing the contracts trade anywhere close to $2.00 lower at any point is aggravating following the wild success the market had last week. Until traders see what this week's fed cash cattle trade is going to amount to -- they'll likely remain on edge and leery of being too supportive. Asking prices are noted in the South at $212-plus, but are still not established in the North. Trade will likely be delayed until Thursday or Friday.
The feeder cattle complex is also trading lower as it continues to mirror the mannerisms of the live cattle market until some support develops technically. The market's current weakness is largely stemming from trader worry that the complex is overbought.
The lean hog complex traded higher as the market is pleased to see pork cutout values higher. The day's higher note in the carcass price, however, largely is thanks to the whopping $19.39 rally in the belly, while most of the other cuts are trading lower. Nevertheless, traders are electing to view the note of this morning's higher carcass price as positive support.
Click HERE for audio