Corn futures closed lower on Wednesday. A combination of factors pulled corn futures lower today. Commodity markets tumbled as the euro zone debt crisis pushed the dollar index higher sparking moderate sell offs of risky assets by investors. Harvest pressure and waning demand for U.S. corn remain burdensome for the market. Lastly, pre positioning ahead of USDA’s quarterly stocks and small grains report also adversely affected the market. The average of trade estimates is pegged at 1.113 billion bushels, down from 1.128 billion bushels a year ago. December corn closed 18 cents lower.
Soybean futures closed lower on Wednesday. Outside market pressure was the driving force behind tumbling commodity market today. The euro zone debt worries sent outside markets spiraling downward as investors liquidated their portfolios of risking assets. USDA announced export sales of 140,000 tonnes of soybeans to an undisclosed location for delivery in 2012/12, but its effect on prices were minimal at best. Soyoil and soymeal markets also closed lower. Soyoil closed $1.44 lower while soymeal closed $9 lower. November soybeans closed down 37 ½ cents.
Wheat futures closed lower on Wednesday. As expected, wheat futures followed the other grain markets lower today. Outside market pressure brought on my euro zone economic uncertainty was particularly bearish for all commodities today as investors looked to sell off risky assets and find a safe haven in the U.S. dollar. Prices felt additional pressure from timely rains across the U.S. plains and position squaring ahead of the USDA’s stocks and grains report set to be released on Friday. December wheat closed 17 ½ cents lower at CBOT; 16 ½ cents lower at KCBT; and 12 ¾ cents lower at MGE.
Live cattle futures closed lower on Wednesday. Live cattle futures closed lower for the second consecutive day. Outside and market pressure and weakness in the wholesale beef market kept futures under pressure the majority of the trading session. Cash trade remains undeveloped with expectations for steady to lower prices versus the previous week. October closed 48 cents lower while December closed 65 cents lower.
Lean hog futures closed mostly lower on Wednesday. The market closed down for the second straight day. Heavy outside market pressure was a factor in the market’s decline but the steep losses in the grain complex were the primary cause of price declines across the 2013 contracts. Generally speaking, the market continues to show signs of recovery with steady to higher cash prices and the expectation that herd liquidation is beginning to slowdown. October closed 60 cents higher while December closed 28 cents lower.