GRAINS:
May corn closed down 1 3/4 cents per bushel at $4.70 1/4 and July corn was down 1 1/2 cents at $4.77 0/1. May soybeans closed down 2 3/4 cents at $10.11 1/4 and July soybeans were down 2 3/4 cents at $10.26 1/2. May KC wheat closed down 6 1/2 cents at $5.72 0/1, May Chicago wheat was down 5 3/4 cents at $5.57 3/4 and May Minneapolis wheat was down 7 1/4 cents at $5.97 1/4.
Ahead of the March WASDE report, U.S. ag futures markets were a bit stronger on corn and soybeans and weaker on wheat. Following what turned out to be a big yawner from USDA, the markets continued that way in low volume trade until late session when corn and beans traded in the red. The only significant change was in U.S. wheat where ending stocks rose by 25 mb. On the world front there were no changes to either Brazil or Argentine corn or soy crops. The market focus is and will continue to be on what appears to be an escalating trade war between Canada and the U.S. Also weighing on markets is the ongoing meltdown in equities with markets down hard again Tuesday.
LIVESTOCK:
The live cattle complex may be traded lower and Tuesday morning's WASDE report was lukewarm in regards to support, but boxed beef prices are just what the market wants to see. With choice cuts up over $4.00 higher and select pushing prices over $2.00 higher -- it's possible that packers could be more aggressive in this week's cash market if demand remains strong. Still no cash cattle trade has developed yet, but asking prices are noted in the countryside at $202 plus. They're still unestablished in the North.
Although, the live cattle complex traded lower, the feeder cattle complex continued to trade modestly higher despite the fact that the contracts are trading at resistance levels. It is interesting to note that the furthest deferred contracts are trading with the biggest day-over-day gains, with some of the deferred months trading more than $1.00 higher. For the spot April contract to etch into new technical territory (meaning it confidently breaks through the resistance threshold at $278.00, it finished under at $277.70) the market will need the help of the live cattle/fed cattle market to sustain prices above that price point.
Although midday pork cutout values were higher, the lean hog complex faltered in the last hour of trade, as the WASDE report wasn't overly fruitful. Packers were fairly aggressive this morning in the cash market, and if pork cutout values close higher, there's a chance that the market could turn higher on Wednesday if fundamental support remains supportive.
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