By: NATHAN STUEDLE
GRAINS:
May corn closed down 2 cents and July corn was down 1 3/4 cents. May soybeans closed down 5 cents and July soybeans were down 4 1/2 cents. May KC wheat closed up 2 cents, May Chicago wheat was up 3/4 cents, May Minneapolis wheat was up 4 3/4 cents.
Thursday's session featured a very volatile morning for outside markets, with crude oil futures initially falling sharply from overnight gains before swiftly reversing course and headed for their strongest close of the war thus far with WTI futures now over $111 per barrel. President Trump's address on Wednesday evening left investors unconvinced of a timely resolution to the war and reopening of trade through the Strait of Hormuz, even as representatives from 40 nations meet in London on Thursday to discuss reopening the crucial waterway. Despite firm energy markets, corn and soybean futures fell from early Thursday highs in what can likely be attributed to week-ending profit-taking. Wheat futures were mixed on Thursday, also falling from early highs with a later rally effort also rejected as markets lacked clear price direction amid another concerning Drought Monitor update from USDA but much-needed rainfall in the past 24 hours for parts of the Southern Plains. As a reminder, U.S. grain markets are closed on Friday in observance of Good Friday.
LIVESTOCK:
Live cattle futures remained positive into the closing bell with light to moderate gains redeveloping early in the session. Although prices continue to shift higher, the lack of market support and enthusiasm seen earlier in the week seems to have dwindled significantly as traders try to find a balance at the higher price points. The potential for firming cash cattle trade and firming beef values will continue to be watched significantly over the next couple of weeks, but currently, traders seem to be comfortable with current positions and willing to keep markets within a narrow to moderate range through the end of the week. Futures trade will remain closed Friday due to the Good Friday holiday, leaving markets closed until next Monday. This could allow for some additional market shifts before the end of trade Thursday, but without a major outside market disruption, prices will likely coast into the long weekend with the current light to moderate gains, especially in nearby live cattle futures contracts. Cash cattle markets are starting to slowly develop, with bids now on the table in many areas, but so far, they are being passed by feeders.
Feeder cattle markets started higher early Thursday morning but have been moving in a narrow but mixed trading range through most of the morning. Limited overall trade is seen Thursday as traders continue to focus on aggressive gains seen earlier in the week, while the overall outlook for beef and cattle markets still remains bullish. But with markets closed Friday and a long holiday weekend approaching, limited new buyer interest is seen Thursday morning, allowing for some end-of-the-week position-taking and market squaring activity. Within one week, the markets have focused on aggressive outside market swings, end-of-month adjustments, quarter-end positioning, and a holiday-shortened trading week. While there are very few strong foundational fundamental changes developing in the cattle or feeder cattle markets through the week.
Lean hog prices softened slightly in futures trade Thursday. The lack of new information in both outside markets and the hog complex has left traders seemingly directionless at the end of the week. Markets will remain closed Friday due to Good Friday and the upcoming Easter weekend. Hog slaughter will also remain moderately subdued Friday and Saturday, and traditionally, next Monday has limited processing runs also, which, given the current amount of market-ready hogs, will limit cash buying intensity by packers over the next week. This is in part focused on current supply, and also outside economic concerns, which may impact pork demand through the end of the year.