By: NATHAN STUEDLE
GRAINS:
December corn closed up 1 3/4 cents and March corn was up 1 1/2 cents. November soybeans closed up 1 1/2 cents and January soybeans were up 1 1/2 cents. December KC wheat closed down 4 cents, December Chicago wheat was down 2 1/2 cents, December Minneapolis wheat was down 2 3/4 cents.
The bearish start to September continued early Thursday before buyers stepped up by late morning, eventually turning soybean and corn futures slightly higher by the close. Meanwhile, wheat futures remain under heavy pressure but are quickly approaching long-term chart support. For now, with a lack of significant market-moving news traders are opting to trade seasonality, of which 5- and 10-year indices suggest a weak start to September while also suggesting the market may start feeling for a pre-harvest bottom over August and September as well. Outside markets were mixed on Thursday with energies mostly lower, but stock indices recovered from a sluggish restart to trade post Labor Day.
LIVE CATTLE:
The mundane sideways to somewhat lower chop continued in the live cattle complex, as no further trade has developed in the fed cash cattle market, and traders remain concerned that the market could be overbought. Traders continued with their cautious tone throughout the day as the market didn't see anything wild and unexpected develop yet in terms of fundamental support, and even if the fed cash cattle market were able to trade a tick higher, there's a chance that traders could be numb to positive development. This morning, asking prices are around $244 to $245 in the South, but they are still not fully established in the North. There was a thin movement of cattle that sold yesterday afternoon at $242 in the South, which is steady with last week's weighted average, and some dressed trade was reported in the North at $383 to $385, which is $1.00 to $2.00 lower than last week's weighted average.
In the feeder cattle complex, traders remain uncertain about the market's technical position, the downward trend continued to be the livestock market's theme thus far through Thursday's trade. And once again, this nervousness remains an issue for the market in terms of its position throughout the futures complex, but is not a concern in the countryside as feeder cattle continue to see incredible demand thanks to the continued interest of buyers.
Following Wednesday's sharp sell-off, the lean hog complex has again seemed to find some footing in the marketplace as it's back to trading higher. It's likely that the resistance pressure that caused the market to fall on Wednesday will be a limiting factor for the market any time soon unless fundamental support gains substantial ground and lends traders substantially more support.