Grains were mixed Wednesday with most losses related to chances for rain in western Canada in the extended forecast. December corn, winter wheat and most other commodities were higher, supported by a dry U.S. forecast and an easing of Monday’s COVID-19 concerns. On the spring wheat front, it was those rain chances for western Canada but also just some general profit taking and correcting of an over bought market. Canola saw a big drop and that pulled soybean oil lower which put pressure on soybeans. Overall, it was a fairly quiet day as the trade is waiting for more direction moving forward with all the factors at play.
The protein sector was solid on the day. Lean hogs continue to see solid strength on African Swine Fever worries and flooding in China affecting their agriculture sector.
The Fed Cattle Exchange Auction listed a total of 3,367 head, of which 426 actually sold, 426 were scratched from the auction and 2,037 head were listed as unsold, as they did not meet the reserve prices that ranged from $118 to $124. Opening prices ranged from $118, high bids ranged from $119. The state-by-state breakdown looks like this: Texas 2,889 total head, with 426 head sold at $119, 2,037 head unsold and 426 were scratched from the auction; Kansas 417 total head, all of which went unsold; Oklahoma 61 total head, all of which sold at $119.
Farm and Ranch Director Jesse Allen has our closing market report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Jesse Allen and Mike Zuzolo of Global Commodity Analytics on today’s episode of Market Talk: