By: NATHAN STUEDLE
GRAINS:
May corn closed down 3 1/2 cents and July corn was down 3 1/4 cents. May soybeans closed down 2 1/2 cents and July soybeans were down 1 1/2 cents. May KC wheat closed down 21 3/4 cents, May Chicago wheat was down 18 3/4 cents, May Minneapolis wheat was down 16 1/2 cents.
Row crops were lower to begin the month of April, led by wheat futures which traded sharply lower in a general risk-off trade with rainfall in the near-term forecast for the Midwest U.S. Otherwise, row-crop futures unwound some war-related premium to begin the month, even as signals remain extremely murky as to if a resolution to the conflict in the Middle East is near, with President Trump on Wednesday morning asserting Iran is seeking a peace agreement, while Iran officially dismissed this and reaffirmed their control of the Strait of Hormuz. President Trump is set to address the nation Wednesday evening regarding the ongoing war. Energy markets climbed from daily lows to remain over $100 per barrel on both WTI and Brent futures, in a display of lingering concern over trade via the Persian Gulf. Equities have turned sharply higher through the week thus far on optimism that the conflict may be winding down.
LIVESTOCK:
Live cattle futures gained additional support with $1 per cwt gains in nearby contracts based on expectations that beef prices will continue to remain strong due to tighter supplies and the upcoming summer grilling season. April contracts were holding above $244 per cwt in morning trade, although volume seems to have slowed significantly from early week. Further buyer interest seems to still be developing, especially given the firmness in outside financial markets over the past couple of days. Cash cattle markets remain undeveloped; all is quiet in feeding country at midday with bids and asking prices still not fully established. Significant trade volume will likely be delayed until Thursday and/or Friday.
Feeder cattle futures posted additional gains through the session, up to $3 to $4 per cwt higher in nearby contracts early. Trade slowed slightly at midday with nearby contracts losing some of the initial market momentum, but an underlying firm market rally continues to hold with traders focusing on strong technical and fundamental support still well entrenched within the market. April futures are holding above $371 per cwt, but the ability for all contracts through October to hold above $360 per cwt keeps traders focused on the potential for additional upward market support in the near future.
Lean hog futures were mixed Wednesday, although buyer support was seen in spot month April, as well as late-summer contracts. That support expanded and the contracts all finished in the green. With more focus moving toward the May and June contracts following the first of April, light to moderate pressure slowly developed in these contracts. Traders remain comfortable with the current market range, but given availability of pork and market-ready hogs, buyers are hard pressed to aggressively move back into the market in the near future.