By: NATHAN STUEDLE
GRAINS:
September corn closed down 1 cents and December corn was down 1 1/2 cents. August soybeans closed down 1 3/4 cents and November soybeans were down 2 cents. September KC wheat closed down 5 1/2 cents, September Chicago wheat was down 7 3/4 cents, September Minneapolis wheat was down 2 1/2 cents.
It was a fairly quiet session across U.S. row-crop markets Thursday as selling pressure did relax somewhat but ultimately bullish traders were unable to make any ground back as corn, soybeans, and wheat markets all fell for a fifth consecutive session. Macro markets were mostly quiet as well, with stocks shaking off a sluggish second revision to first quarter U.S. GDP, with the S&P500 nearing all-time highs again and a complete recovery of the tariff-induced dip in March.
LIVESTOCK:
Live cattle futures hovered in a narrow trading range through Thursday's session with limited early support in spot June contracts being offset by very limited and narrow losses in the rest of the complex. The support trickled in late and managed to push all contracts into the green. Traders see very little new direction in the market at the end of the week with the focus on cash market moves and the ability to sustain beef values heading into the holiday week. Overall trade may become increasingly sluggish next week due to the Fourth of July holiday, but traders still remain focused on the recent market support which has developed over the past two months, and continue to look for additional support to be seen in order to curb the current market correction seen over the past two weeks. Cash cattle markets are starting to slowly develop with a few bids on the table in parts of Nebraska. But they are well below current asking prices of around $228 to $230 in the South and $376-plus in the North. Packer inquiry will continue to improve as the day progresses. We are hearing a couple of packing plants will be dark or running with limited production today and/or Friday. The Grand Island, Nebraska, JBS plant will limit production due to flooding, heavy rainfall and lagoon issues; production is expected to drop to between 1,000 to 1,500 head, down from the usual 5,200 head. Tyson's facility in Amarillo, Texas, will be dark today and Friday due to labor issues, as workers vote on whether to strike or not. There is said to be picketing around the plant, with labor demands mostly centering around wages and more time off.
Feeder cattle futures were mixed with light but stable buyer support moving into nearby contracts throughout Thursday. Limited activity is expected to be seen through the rest of the week with traders looking for additional longer term direction from both cash cattle trade at the end of the week and outside market direction.
Lean hog futures posted light to moderate losses during trade Thursday. Traders continue to look ahead to the afternoon release of the June 1 Quarterly Hogs and Pigs Report, but early expectations see significant fireworks from the report. Many feel overall hog numbers and breeding intentions will be fractionally changed from year ago levels. Given that these reports are quarterly in nature, most of the expected impact is likely already factored into the market over the past several weeks. But a surprise in the report could bring about some market shifts early Friday.
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