By: NATHAN STUEDLE
GRAINS:
July corn closed up 2 cents and December corn was up 5 1/4 cents. July soybeans closed up 3/4 cents and November soybeans were up 1/2 cents. July KC wheat closed up 23 1/2 cents, July Chicago wheat was up 25 1/4 cents, July Minneapolis wheat was up 15 1/2 cents.
It was an overall green day across U.S. row-crop markets for Wednesday, with strength stemming primarily from wheat markets which surged to the highest prices seen for July futures since mid-April. Storms rolled through the Southern Great Plains primarily in Kansas on Tuesday, with more chances for storms over the next week leading to concerns that U.S. winter wheat harvest will slip further behind schedule. Corn and soybean markets traded higher as well, albeit in a much quieter fashion compared to wheat. In macro news for Wednesday, the Federal Reserve kept interest rates unchanged while still planning for two cuts later this year, this move was widely anticipated by traders and investors. Lastly, markets will pause on Thursday in observance of Juneteenth, with grains reopening Thursday evening at 7 p.m. CDT.
LIVESTOCK:
Although the live cattle contracts were pressured throughout the day, the market was able to round out the day on a positive note, as just before closing traders found support. It was interesting to see traders respect the market's 40-day moving average and to see that they elected to keep the spot August contract above that threshold. Now combine the positive movement of the board with the slightly weaker tone of the fed cash cattle market, and it's anyone's guess what the rest of this week's trade will become.
The feeder cattle complex continued to follow the live cattle market's direction innately, so when the live cattle contracts popped higher, so did the feeder cattle contracts. Results of the Corn Belt Classic should be shared later this evening, but reports suggest a stronger undertone was definitely noted.
The lean hog complex was able to thankfully close higher Wednesday afternoon although pork cutout values ended weaker. But with the significant jump in cash prices, traders opted to see the positivity in the market and push prices higher. Again this afternoon the butt's $4.22 decline was the biggest reason why the carcass price was pulled lower, but most of the cuts did end lower to one degree or another.
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