By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
May corn closed down 3 3/4 cents and December corn was down 3 1/2 cents. May soybeans closed up 5 1/4 cents and November soybeans were up 1 cents. May KC wheat closed down 8 1/4 cents, May Chicago wheat was down 7 1/4 cents, May Minneapolis wheat was down 4 cents.
President Trump said on Tuesday afternoon that the extremely elevated tariffs of 145% (ranging as high as 245% depending on the product in question) could possibly be reduced, likely in an attempt to bring China to the table for negotiations after Chinese officials reiterated Wednesday willingness to talks but not under the recent series of escalations and threats. No official decision has been announced but these positive comments, coupled with a similar sentiment from Treasury Secretary Bessent on Tuesday, allowed soybean prices to build off Tuesday's session to trade back among the strongest price in almost two months. Meanwhile, wheat prices continue to be pressured by the current U.S. weather forecasts, with Kansas City futures hitting a fresh contract low on the May board on Wednesday. Corn futures were down as well, pressured by wheat and good weather for development in Brazil. Outside markets were of mixed influence on ag products on Wednesday, with stock indices higher, but the U.S. dollar also higher and crude oil posting a reversal candle lower lent some pressure to the ag complex.
LIVESTOCK:
The live cattle complex was able to successfully maintain its higher position through Wednesday's trade which is quite commendable given that the market gapped higher at the day's start and traded slightly above the spot June contract's previous resistance level. Traders are likely to monitor fundamental support closely through the later part of the week as they're hoping to see support from both cash prices and boxed beef prices compliment their higher push this morning. Still no developments have surfaced in the cash cattle market and trade will likely be delayed until Thursday, or even Friday.
The feeder cattle complex did not see quite as much momentum in its market as compared to the live cattle contracts, but they still traded higher, nonetheless. The feeder cattle complex seems more concerned about its technical resistance pressure as traders haven't taken on the looming resistance at $293.00 in the spot August contract.
The lean hog complex's rally has been slightly broken as the nearby contracts traded softly lower while the deferred months continued to push mildly higher. It was pretty impressive that the lean hog complex had a nine straight day consecutive rally which helped propel the spot June contract to the highest price the market has traded since late February. But after such aggressive technical footwork, the market seemed to cool its momentum as traders look around to see if the markets' fundamentals are going to support such a move.
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