By: NATHAN STUEDLE
GRAINS:
July corn closed down 1/2 cent and December corn was up 1 1/2 cents. July soybeans closed up 9 1/4 cents and November soybeans were up 6 1/2 cents. July KC wheat closed down 1/4 cents, July Chicago wheat was up 2 1/4 cents, July Minneapolis wheat was up 1/2 cents.
Row-crop futures continued to see relief from the barrage of selling over the last half of May and early June with the soybean complex joining on Wednesday as well to lead the markets in daily gains. Technical-based buying was supported by increased military action in the Middle East in recent days with the U.S. launching retaliatory strikes against Iran on Tuesday and President Trump stating Wednesday attacks will continue. In macro news, Wednesday's CPI inflation reading was the highest in three years with the headline inflation rate moving over 4% annualized. However, the core index (removing food and energy) reflected a 2.9% annualized inflation rate, much cooler within the scope of recent history and indicative of how the 2026 energy shock is the primary driver of consumer cost increases.
LIVESTOCK:
Live cattle futures rallied modestly into Wednesday's close as the market is hopeful fundamental support is going to arise later in the week. It will be interesting to see how traders handle this afternoon -- along with Thursday's open -- as the contracts are nearing resistance and could grow weary of pushing higher if fundamental support doesn't develop immediately. The cash cattle market is quiet at this point with no bids currently on the table. On Tuesday some bids were offered in Nebraska at $403 -- but no cattle traded. Asking prices are noted in Texas at $258 to $260.
Feeder cattle future's upward movement Wednesday was somewhat expected given the live cattle contracts were trading higher. Unlike the live cattle contracts, the feeder cattle contracts are further away from their resistance which means the market should be able to trade higher with ease if traders continue to believe that's the way the market should go.
After trading lower for four days in a row, the lean hog complex has found some support on this Weednesday, as its two nearby contracts were higher. It is worth noting that, along with finding technical support this morning, the contracts were also pleased to see a slight uptick in pork demand.