Ag markets generally followed financial markets higher Wednesday
Corn futures turned lower Wednesday. Talk that Corn Belt weather is set to turn clear and dry over the next two weeks seemingly depressed the corn market today, since that window could allow farmers to quickly finish the fall harvest and avoid problems associated with delays. December corn futures dipped 0.75 cent to $4.4275/bushel in late Wednesday trading, and May declined 0.75 cent to $4.635.
The soy complex continued its overnight rebound. Soy market bulls seemed to react to the surprisingly large September crush figure posted by NOPA Tuesday afternoon. The fact that palm oil continued its recent rally very likely pulled soyoil higher as well; that also appeared to support beans. The meal market is suffering from its position on the wrong side of the crush spread at this point. November soybeans surged 9.5 cents to $12.765/bushel at Wednesday’s close, while December soyoil jumped 0.71 cents to 41.37 cents/pound, and December soymeal inched up $1.4 to $403.8/ton.
Improved weather conditions also weighed upon wheat futures today. Wheat traders seemed to return their focus to India’s threat to lower its export floor price Wednesday. In addition, talk that dryer conditions in Russia and Ukraine could lead to greater plantings in that region depressed prices. December CBOT wheat settled 4.25 cents lower at $6.815/bushel Wednesday, while December KCBT wheat tumbled 11.5 cents to $7.4475, and December MGE futures lost 7.75 to $7.425.
Anticipated cash strength reportedly sparked cattle buying Wednesday. CME traders apparently turned rather optimistic about the likely outcome of this week’s cash trading today. A portion of that optimism may also have stemmed from reports of a looming end to the federal government shutdown, especially with equity markets soaring on the news. December cattle futures climbed 0.50 cents to 133.25 cents/pound late Wednesday, while April gained 0.40 to 135.67. Meanwhile, November feeder cattle rallied 0.22 cents to 167.72 cents/pound, and January ran up 0.82 to 167.57.
The hog market resumed its surge Wednesday. Talk of steady cash prices probably encouraged CME hog buying in early trading. That seemingly became even more likely after the equity and live cattle markets surged on word of a looming end to the government shutdown. December hog futures closed up 1.00 cent at 88.80 cents/pound, while April bounced 0.60 cents to 90.70.