By: NATHAN STUEDLE
GRAINS:
July corn closed down 3 1/2 cents and December corn was down 4 1/4 cents. July soybeans closed down 5 1/2 cents and November soybeans were down 6 3/4 cents. July KC wheat closed down 11 3/4 cents, July Chicago wheat was down 13 cents, July Minneapolis wheat was down 4 1/4 cents.
U.S. ag futures across crops and livestock kept mostly lower again Thursday with row-crop prices pressured by a rainy outlook for the end of May and early part of June. Early-session support had stemmed from firm energy markets; however those markets turned lower by early afternoon as optimism has grown regarding the latest push for an agreement to end the conflict and reopen the Strait of Hormuz to trade. Equity markets have reversed from early lows on peace optimism as well.
LIVESTOCK:
Wednesday afternoon the live cattle complex pulled back mildly and softly uncomfortable by the market's resistance. However, at Thursday's open, the market pulled back abruptly, as if someone had accidently put their hand on a red-hot burner, pulling back with sheer instinct and without hesitation. Some light cash cattle trade has been noted Thursday in the South at $260, which is fully steady with last week's weighted average. There was a light movement on Wednesday in the North at $415, which is $4.00 higher than last week's weighted average, but no new Northern trade has developed Thursday.
Keeping in perfect alignment with the live cattle contracts, the feeder cattle market was enduring a painful regression, where the vast majority of the contracts were trading limit lower into Thursday's closing bell. More than anything, the disconnect currently seen between the market's fundamentals and the futures complex is nauseating. And, with the Cattle on Feed report expected to be bearish as well, plenty of bearishness has seeped into the market.
The lean hog complex was also trading lower as the market simply can't summon the support it needs. Unfortunately, this lower trend is likely to continue into early Friday as well.