By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain futures finished sharply lower Wednesday following the USDA reports, with corn taking the biggest hit.
Corn futures closed down roughly 18¼ to 20½ cents as the market reacted to a bearish set of USDA numbers. The report quickly overwhelmed the modestly firmer tone seen ahead of the release and triggered heavy selling across the corn complex.
Soybeans also finished lower, down about 2¼ to 4¾ cents. Beans had traded higher earlier in the session, but the strength faded after the reports and broader weakness in the grain markets pulled prices into negative territory.
Wheat futures were sharply lower as well, falling about 9 to 17 cents depending on the contract. The move extended recent weakness and reflected another strong bearish reaction to USDA data.
Overall, Wednesday was a report-driven selloff, with corn and wheat hit especially hard and soybeans unable to hold early gains.
LIVESTOCK MARKET SUMMARY
Livestock futures moved sharply higher Wednesday, with both live cattle and feeder cattle posting strong gains.
Live cattle finished about $1.45 to $2.15 higher. The market showed strength throughout the session and extended the recent rebound, with gains coming in stronger than early expectations.
Feeder cattle were even stronger, closing roughly $2.77 to $4.92 higher. The feeder market benefited from the sharp break in corn prices, which improved the feed-cost outlook and helped fuel buying interest.
The livestock complex clearly moved in the opposite direction of the grain markets Wednesday. Lower feed costs provided support, especially to feeders, while live cattle also posted solid gains.
The bottom line: USDA hammered the grain board, while cattle took full advantage of the drop in feed costs.