By: NATHAN STUEDLE
GRAINS:
December corn closed down 3 3/4 cents and March corn was down 3 3/4 cents. November soybeans closed down 7 1/4 cents and January soybeans were down 5 3/4 cents. December KC wheat closed down 3 1/2 cents, December Chicago wheat was down 3/4 cents, December Minneapolis wheat was up 1 1/2 cents.
Corn, soy, and wheat prices fell Thursday, erasing gains made through a generally bullish midweek session Wednesday. Corn and soybean futures hit technical resistance Thursday, which bullish traders lack the reassurance to trade through currently with no USDA report this month to back up thoughts (supported by firmer spreads and basis levels) that the supply and demand relationship for corn and soybeans is tighter than previously reports have estimated. Outside markets on Thursday leaned negative, with a firmer U.S. dollar and lower energy markets weighing on agricultural prices.
LIVESTOCK:
The live cattle complex again followed in the feeder cattle market's wake, trading higher, with once again the market's deferred contracts seeing the biggest gains. With the spot December contract nearing the market's resistance at $241, it will be interesting to see how traders handle that threshold, as not only is it a resistance plane, but depending on how far traders would potentially take the contracts, it could mean new record high prices for the contracts as well. A single bid of $230 is currently on the table in Nebraska, but still no cash cattle trade has developed as feedlot managers are hoping to hold prices at least steady, and packers are obviously hoping to again work the market lower. Asking prices are noted at $235 to $237 in the South but are still not established in the North.
Rallying like it didn't have a care or a concern in the world, the feeder cattle contracts were pressing onward, pushing an aggressive $3.00 rally into midday Thursday. On Wednesday afternoon, the market was pleased to successfully reach new contract highs, which has seemed to fuel the market's ambition as traders have restlessly continued to push it higher and higher. Yes, seeing stronger boxed beef prices is helping, and if the fed cash cattle market were to trade steady to somewhat higher, that would be positive as well, but time will tell if that support develops or not.
It was another painstaking morning and session overall for the lean hog complex as support did not come to fruition, and the contracts were struggling because of that. Both cash prices and pork cutout values were weaker in the midday reports, and it's likely that remains the theme through the balance of the week.