By: NATHAN STUEDLE
GRAINS:
July corn closed up 1/4 cents and December corn was up 5 1/4 cents. July soybeans closed up 4 1/4 cents and November soybeans were up 3 1/2 cents. July KC wheat closed up 3 3/4 cents, July Chicago wheat was up 7 1/4 cents, July Minneapolis wheat was up 5 1/2 cents.
Corn, soybeans, and wheat markets closed higher Wednesday amid technical support as well as trade optimism as the U.S. enters a busy second half of the week with trade talks taking place Wednesday with European Union representatives in Paris and President Trump reportedly scheduled to speak on the phone with China's President Xi on Friday. Macro markets were more on edge for Wednesday, with the U.S. Dollar Index continuing to drift lower and back amongst its lowest level since late April amid tariff concerns, a move which has likely offered some support to Ag futures especially wheat prices. Equity markets for Wednesday were mostly steady, while energy markets were mixed with NYMEX crude oil futures correcting lower after hitting chart resistance near $64 per barrel, a level that has kept prices in check on multiple tests since mid-April as OPEC+ production concerns linger over the market.
LIVESTOCK:
The live cattle complex traded higher into Wednesday's closing bell as the market is hopeful that fundamental support will arise later this week, but currently, no cash cattle trade has developed and boxed beef prices are mixed. More than anything, traders are merely keeping the contracts steady in their current sideways trading range until they have a better idea of what the cash market is going to do this week. Asking prices are noted in the South at $226, but otherwise the market is still silent otherwise.
The feeder cattle complex was again following in the live cattle market's direction as all are hopeful that traders will later in the week find the fundamental support that they're hopeful to see, but at this point, it's still too early in the week to know. Demand in the countryside has been strong again this week other than feeders weighing 600 to 700 pounds as grass buyers have largely fulfilled their needs already for the week.
With the help of strong cash prices and a slight improvement in consumer demand, the lean hog complex once again traded higher on Wednesday's session. The biggest help this morning in regard to pork demand was the $3.80 increase in the belly.
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