By: NATHAN STUEDLE
GRAINS:
May corn closed up 9 3/4 cents and July corn was up 9 1/4 cents. May soybeans closed up 9 3/4 cents and July soybeans were up 9 1/2 cents. May KC wheat closed up 20 cents, May Chicago wheat was up 15 1/2 cents, May Minneapolis wheat was up 10 1/4 cents.
For Thursday, traders saw the need for added risk premium in commodity markets, with wheat futures leading the way with another double-digit spike back toward calendar year highs. That positively influenced corn futures as well in tandem with another very strong round of export data released by USDA on Thursday morning. Soybeans were higher and back toward early week highs for the rally, with soybean oil providing bullish influence given the firm energy sector. Meanwhile, in other outside markets, the Dow Jones Industrial Average crashed again following a brief midweek reprieve from selling. Inflation and high interest rates fears (as a result of high energy costs) are driving investor sentiment, with the U.S. Dollar pressing higher and back towards 2026 highs as well.
LIVESTOCK:
The live cattle complex traded mildly higher following Wednesday's sizeable surge. Traders are cautiously advancing the spot April contract above its 40-day moving average, but it's not come without some worry as traders question whether or not they're overdoing the upward trend right now. If we had seen some stronger trade in the fed cash cattle market, then there likely wouldn't be any worry amongst traders; but we've yet to see any cash trade develop. There's a single bid currently on the table at $375 in Nebraska, but otherwise the market is sitting idle as feedlot managers wait for packers to offer up stronger bids. Asking prices are noted at $244 in the South but are still not established in the North.
The live cattle complex is pushing its spot April contract above the 40-day moving average, but the feeder cattle complex isn't seeing the same level of support as traders aren't comfortable pushing above their 40-day moving average at this time. The feeder cattle contracts continued to hedge on the side of safety and continue to trade steady to slightly lower.
Following Wednesday's sharp rally, the lean hog complex was mixed heading into Thursday's close as traders no longer want to push the contracts up to the market's resistance. It is helpful to see pork cutout values mildly higher as traders need to see continued fundamental support.