Ag markets ended Wednesday rather weakly
Corn futures closed at chart support Wednesday. The corn market pushed above moving average support last week, but reacted weakly to bullish USDA news Monday. Thus, the subsequent slide has not been terribly surprising. Nearby futures ended the day resting on those support levels again this afternoon. March corn closed down 1.5 cents at $4.40/bushel Wednesday, while May slipped 1.25 to $4.46.
Chinese cancellations undercut beans and meal. The soy complex came under fresh pressure Wednesday morning after the USDA announced that Chinese buyers had cancelled orders for 272,000 tonnes of beans for 2013/14 delivery. They also announced large sales, but those are slated for next year. Soyoil futures diverged from the bean/meal losses, with Asian palm strength likely providing the upward impetus. March soybeans fell 11.75 cents to $13.23/bushel at their Wednesday close, while March soyoil climbed 0.14 cents to 38.99 cents/pound, and March soymeal tumbled $5.7 to $443.5/ton.
Wheat futures turned quite mixed Wednesday afternoon. After exhibiting varying degrees of strength Tuesday, the wheat markets were trading in mixed fashion this morning. Weather and transport concerns supported Kansas City and Minneapolis prices, respectively, while the Chicago market apparently reflected developments in the broader markets. The soybean decline seemingly weighed on the nearby contracts. March CBOT wheat futures dipped 3.25 cents to $5.87/bushel as Wednesday’s session ended, while March KCBT wheat futures slid 2.5 cents to $6.63, and March MWE futures lost 6.5 to $6.5475.
Cattle futures lost their upward momentum Wednesday. CME cattle futures surged in response to increased packer bids for Southern Plains animals Tuesday. Prices rose farther overnight, but proved unable to sustain the advance as Wednesday passed. That may have reflected persistent beef losses, since those could curtail packer demand for fed cattle. April cattle futures settled 0.40 cents lower at 140.77 cents/pound Wednesday afternoon, while August sagged 0.52 cents to 130.50. Meanwhile, March feeder cattle slipped 0.27 cents to 168.50 cents/pound, and May stumbled 0.32 lower to 170.02.
Hog futures ended Wednesday in mixed fashion. CME hog prices bounced moderately overnight, which may have reflected spillover support from the cattle market. However, futures turned decidedly mixed by late morning, possibly in reaction to the cattle reversal and to the huge premiums already built into the summer contracts. April hogs gained 0.20 cents to 93.37 cents/pound as the CME pit session ended Wednesday, but June skidded 0.02 to 104.657.