By: NATHAN STUEDLE
GRAINS:
December corn closed up 3 3/4 cents and March corn was up 4 3/4 cents. January soybeans closed up 12 3/4 cents and March soybeans were up 14 1/4 cents. December KC wheat closed up 3 1/2 cents, December Chicago wheat was up 4 1/2 cents, December Minneapolis wheat was down 1 cent.
Crop futures recovered from Tuesday's profit-taking session to trade moderately higher, fueled by confirmation out of Beijing that tariffs will in fact be greatly reduced. Though reports that U.S. soybeans will remain subject to a 13% duty caused a bit of a stir in analyst circles, the market largely ignored this caveat for Wednesday's session, discussed in further detail below. In outside markets, softer energy markets were a bit of a headwind for grain and oilseed futures, while the U.S. Dollar Index has shown signs of a potential top near 3-month highs after five consecutive days higher. Equity markets were firm, snapping a 2-day skid after ADP reported strong payroll totals in a Wednesday morning report.
LIVESTOCK:
The live cattle complex continues to dive frantically lower, as yet another level of confidence has eroded from the market. Even though US Ag Secretary Brooke Rollins has indicated that the border isn't going to reopen anytime soon, the live cattle contracts are trading limit lower as there seems to still be some concern around the matter. Some light trade has also developed in the countryside as Northern dressed deals are being marked at $360, which is $2.00 higher than last week's weighted average, but Southern live cattle are trading at $232, which is $4.00 lower than last week's weighted average. But upon seeing the board drift sharply lower, bids have been knocked lower as packers are now just offering $357 to $358 for dressed cattle and $225 for live.
And following in the same manner, the feeder cattle contracts were also trading limit lower into Wednesday's noon hour. Unfortunately, this bearish onset has again pushed the market well below its 100-day moving average, and will likely affect feeder cattle sales in the countryside.
Without enough fundamental support helping the lean hog complex, it comes as little surprise that the market is again trading and finishing no better than mixed. Yes, midday pork cutout values may have been a tick higher this morning, but traders need more reassurance than that.