Concerns about the large harvest seemed to weigh upon corn prices Wednesday. Despite firm cash prices and overnight news of active South Korean buying of U.S. corn, futures had turned downward late Wednesday morning. Concerns about the sheer size of the record harvest may have been exaggerated by spillover weakness from the wheat pit. December corn futures dipped 1.5 cents to $4.305 by midsession Wednesday, while May futures lost 2.25 cents to $4.505.
Rising vegoil prices are supporting the soy complex. The Asian palm oil markets rallied again Tuesday night on concerns about Indonesian crop. Strength spilling over into soyoil futures probably boosted soybeans as well, especially in light of firm country market reports. Meal is suffering from its position on the wrong side of the crush spread at the moment. November soybean futures climbed 4.75 cents to $12.8375/bushel Wednesday morning trading, while December soyoil jumped 0.71 cents to 41.68 cents/pound, whereas December soymeal slipped $0.3 to $410.5/ton.
Indian news seemed to undercut wheat futures. India is sitting on huge stockpiles of low quality wheat, so today’s news that the Indian government has cut the floor price for wheat exports increase supplies on the international market. The news was not unexpected, which probably limited its market impact. December CBOT wheat futures fell 5.0 cents to $6.7625/bushel late Wednesday morning, while December KCBT wheat futures slid 1.75 cents to $7.50, and December MWE futures sagged 2.75 to $7.3375.
Profit-taking may have undercut cattle futures Wednesday morning. Surging beef prices have boosted cattle prices in the country and in Chicago lately. However, traders are probably evening up positions ahead of the USDA’s looming release of its September Cattle on Feed report tomorrow. December cattle sank 0.30 cents to 133.97 cents/pound in late-morning Wednesday action, while April rose 0.17 to 134.72. November feeder cattle declined 0.37 cents to 166.37 cents/pound and January feeders slumped 0.27 to 166.62.
Sliding cash and wholesale prices also weighed upon hog values. Although the swine industry apparently remains optimistic about the intermediate term price outlook due to probable PEDV losses, short-term considerations are a different story. The fact that cash and wholesale prices suffered moderate losses Tuesday seemingly depressed futures today. December hog futures fell 0.55 cents to 90.80 cents/pound just before lunchtime Wednesday, while April tumbled 0.95 cents to 94.80 cents/pound.