By: NATHAN STUEDLE
GRAINS:
U.S. wheat futures capped a bullish week with a strong close, sitting directly below 2026 highs for KC futures while Chicago futures hit a new high point in over two-years early Thursday. Traders are currently weighing the long-term risks and uncertainty tied to disrupted grain trade in the Black Sea, with few reports of improvements to the situation. Corn and soybeans were supported at the close of the week as well, with demand a bright spot within the soybean market. The corn market was sluggish through the second half of this week with next week's forecasts calling for cooler temperatures across the U.S. Grain Belt. However, it is difficult to say the risk to the corn crop is over, with a dry outlook still in the cards for the Western Corn Belt over the next week to ten days. Outside markets on Friday leaned mostly positive influence on ag futures, with firm energy markets as crude oil traded to its highest mark in over a month as the war between the U.S. and Iran continues to escalate.
September corn closed up 3 1/4 cents and December corn was up 3 1/2 cents. August soybeans closed up 9 1/2 cents and November soybeans were up 8 cents. September KC wheat closed up 15 3/4 cents, September Chicago wheat was up 8 cents, September Minneapolis wheat was up 6 1/2 cents.
For the Week:
September corn closed up 5 1/4 cents and December corn was up 6 1/2 cents. August soybeans closed up 12 3/4 cents and November soybeans were up 12 1/4 cents. September KC wheat closed up 56 cents, September Chicago wheat was up 42 1/2 cents and September Minneapolis wheat was up 39 1/4 cents.
LIVESTOCK:
Yes, midday boxed beef prices may have been a tick higher; but that's simply not enough support to mean much to the live cattle complex at this point. No new action has developed in the fed cash cattle market and it looks like business is essentially done for the week. Throughout the week, Northern dressed cattle have traded from $370 to $385, but most at $377 to $380, which is $12.00 to $15.00 lower than the previous week's weighted average. Southern live cattle have been traded at mostly $237 to $238, which is $10.00 to $11.00 lower than last week's weighted average.
In keeping alignment with the week's trend, the feeder cattle contracts yet again trailed lower. At this point -- with the futures market still trading lower and the fed cash cattle market trading significantly lower -- there's very little chance prices improve anytime soon.
The lean hog complex is continuing to grind higher -- pleased with continued support from consumers and thankful enough trader support has worked its way into the market to conquer resistance levels. With the next resistance point far off in the horizon, it's likely the contracts will be able to keep with their rally into the new week ahead.