By: NATHAN STUEDLE
GRAINS:
May corn closed up 1/2 cent and July corn was up 3/4 cent. May soybeans closed down 10 cents and July soybeans were down 10 3/4 cents. May KC wheat closed down 5 3/4 cents, May Chicago wheat was down 5 3/4 cents, May Minneapolis wheat was down 1/4 cents.
It was another mostly quiet session for row-crop futures as prices reversed from early highs, with overnight reports of three ship attacks in the Strait of Hormuz setting the tone with higher energy markets for a third straight session. West Texas Intermediate prices are close to completely regaining the losses from last Friday's gap lower. Interestingly, U.S. equity markets were higher as well, as investors for now shrug off war risk amid reports that U.S. and Iranian officials could convene as early as Friday to resume negotiations. Corn futures have strung together a solid bounce from early April lows but faded into Wednesday's close on spillover weakness from soybeans. Soybeans saw bearish momentum increase through the session after failing to overcome chart resistance toward the top end of the past month price range. Wheat futures were mixed for much of the session but eventually fell as well on technically based profit taking.
LIVESTOCK:
With some choppiness in boxed beef prices and still no sizeable trade volume in the cash market, it comes as no real surprise to see the live cattle futures trading lower. There are bids surfacing in the cash market, but there is yet to be any sizeable trade. Asking prices are noted at $388 in Nebraska, but otherwise no other asking prices are reported. Trade could begin to develop later Wednesday afternoon, but it's more likely trade will be delayed until Thursday or Friday.
The feeder cattle complex was trading slightly higher early on for Wednesday's session, but upon seeing the live cattle contracts soften and scale lower, the feeder cattle moved that way as well. It's not helpful that corn prices are slightly higher either. Although corn prices remain affordable from a historical perspective, a three-day rally in the spot July corn contract is something traders have noted.
The lean hog complex is continuing to trend mostly higher, although the spot June contract was a tick softer Wednesday morning as morning pork cutout values were lower. More than anything it's a relief to see the complex turn direction and trade higher, largely because of the uptick in consumer support. That consumer demand will need to remain a stable supportive factor to move forward.