Favorable conditions continued depressing corn futures Tuesday night. Although China announced overnight that it will increase its domestic grain storage capacity by 50 million tonnes, that apparently did little to support corn futures. Prospects for a bumper autumn harvest reportedly dragged yellow grain prices lower once again. July slid 2.5 cents to $4.405/bushel early Wednesday morning, while December declined 2.75 to $4.38.
The soy complex is starting Wednesday in mixed fashion. There was a dearth of fresh soybean news last night. This may have opened the door to early position squaring ahead of next Monday’s big Grain Stocks and Acreage reports. Beans and meal advanced moderately, whereas flat palm oil prices seemed to cap rally attempts in the oil market. July soybeans gained 2.5 cents to $14.16/bushel Tuesday night, while July soyoil fell 0.45 cents to 40.52 cents/pound, and July soymeal rose $3.6 to $452.0/ton.
The wheat markets dipped in concert with corn prices. Wheat futures also suffered from a lack of news last night. The domestic situation doesn’t appear all that negative, especially with ongoing rainfall now threatening the quality of the crop. However, global conditions remain decidedly bearish, with U.S. wheat having a hard time competing on international markets. July CBOT wheat futures sank 2.5 cents to $5.685/bushel as the early-morning trading pause loomed Wednesday, while July KCBT wheat sagged 1.75 cents to $7.0375, and July MWE futures lost 1.25 to $6.7525.
Stalling beef prices appeared to undercut cattle futures last night. The wholesale market has powered the whole cattle and beef complex higher lately. However, the rate of gain diminished substantially Tuesday, with select cuts actually declining from midday levels by late afternoon. Cattle traders didn’t react very well to that news in overnight trading. August cattle dipped 0.15 cents to 149.57 cents/pound in early Wednesday trading, while December slumped 0.07 to 153.85. Meanwhile, August feeder cattle advanced 0.35 cents to 210.97 cents/pound, but October edged up 0.02 to 212.37.
Hog futures reacted rather modestly to late Tuesday support. The cash hog and wholesale pork markets posted strong gains again late yesterday afternoon, which seemingly bodes well for the short-term outlook. However, nearby futures rose rather modestly and deferred futures actually declined, thereby suggesting industry concerns about a short-term top. August hog futures climbed 0.57 cents to 131.65 Tuesday night, while December tumbled 0.07 cents to 97.82.
Expiring July cotton led an overnight ICE rebound. Bulls actively bailed out of the expiring July cotton contract as it entered its delivery Tuesday. However, the resulting dive seemingly reduced prices to the point where it became attractive to users, since it led a sizeable overnight rebound in the fiber market. July cotton futures jumped 1.94 cents to 83.75 cents/pound shortly after sunrise Wednesday, while December cotton bounced 0.28 to 76.77.