By: NATHAN STUEDLE
GRAINS:
March corn was up 4 1/4 cents per bushel, January soybeans were down 6 1/2 cents, March KC wheat was 1/4 cent lower steady, March Chicago wheat was 1/2 cent higher and March Minneapolis wheat was near unchanged.
Heading into the Tuesday close, except for corn, the December WASDE report turned out to be a dud. Corn export sales were increased by a more-than-expected 125 mb to a record large 3.2 billion bushels. The wheat and soy balance sheets in the U.S. were left untouched and that seems strange for beans with the tepid pace of China purchases. In wheat, major exporter supplies rose by close to 9 mmt, but that was pretty much in the market.
LIVESTOCK:
The live cattle complex got off to a mild rally this morning as the market desires to trade higher, but traders aren't confident that the market possesses enough support to break through the market's stiff resistance at its 40-day and 100-day moving averages just yet. Still no cash cattle trade has developed and bids and asking prices remain elusive at this point. Tuesday's WASDE report shared mixed news for cattle and beef markets of 2025 and 2026. Beef production for 2025 was increased as both fed and non-fed slaughter have increased, and as carcass weights continue to be at an all-time high. Beef production for 2025 is now estimated at 25,950 million pounds -- up 194 million pounds from last month's report. Beef production for 2026 increased from last month's report as well -- now estimated to total 25,725 million pounds, up 335 million pounds from last month's estimate.
The feeder cattle complex was traded right in line again this week with the live cattle market -- seeing more than enough fundamental support in feeder cattle sales in the countryside -- but without the technical reassurance from the live cattle market, traders aren't willing to push the contracts beyond the 40-day and 100-day moving averages just yet. Yesterday afternoon, feeder cattle prices were marked anywhere from $5.00 to $30.00 higher as demand has again perked back up in the countryside.
And just like the cattle complex, the market's resistance simply seems too stiff for the lean hog complex to challenge at this point in time, as most of the contracts traded lower into the day's closing bell. It's likely that the market will keep this slightly lower tone, as it's going to take substantial fundamental support to develop before traders will likely challenge that resistance threshold. And although midday pork cutout values were higher, traders are going to need to see consistent support as well. Tuesday's WASDE report shared mixed news for the hog and pork markets of 2025 and 2026. Pork production for 2025 was decreased by 25 million pounds, and pork production for 2026 remained steady at 27,475 million pounds for 2026.