The financial market situation seems quite supportive of the commodity outlook at this point, since equities are rising from record highs and the dollar is quite weak today. Nevertheless, corn futures declined Wednesday morning. Tight old crop conditions seemed to limit early losses, but growing anticipation of accelerated plantings during the next week or so apparently undermined the whole complex around midsession. July corn declined 10.5 cents to $6.295/bushel late Wednesday morning, while December dropped 8.75 cents to $5.305.
Tight supplies and firm prices continued supporting soybean futures early Wednesday morning, but bulls later got a boost from a USDA report of a 115,000-tonne sale to China for the 2013/14 crop year. Despite the possibility that accelerating corn plantings could diminish acreage switching from corn to beans, deferred soy futures also proved weaker than their nearby counterparts. July soybean futures rose 9.25 cents to $13.915/bushel as the lunch hour loomed Wednesday, while July soyoil gained 0.09 cents to 49.23 cents/pound, and July soybean meal climbed $3.0 to $406.3/ton.
Wheat futures slipped Wednesday morning in concert with their counterparts in the corn pit. Uncertainty about the size of the winter wheat crop seemed to support the expiring May KCBT contract, but the rest of the wheat complex had declined. The expected surge in spring wheat plantings probably weighed upon deferred futures. Traders may also be exiting previously established longs prior to the Friday morning release of the monthly USDA Crop Production report, since it will have the first estimate of the 2013 U.S. winter wheat crop. July CBOT wheat futures slipped 6.75 cents to $7.0225/bushel around midsession Wednesday, while July KCBT wheat slid 5.75 cents to $7.5225, and July MGE futures skidded 2.25 cents to $8.075.
Cattle futures remained under downward pressure Wednesday morning, which apparently reflected trader pessimism about short-term cash and wholesale prospects. However, the fact that they have pushed the nearby contracts to major discounts below the cash prices reached last week seems likely to limit their downside potential until such bearish expectations are fulfilled. June cattle fell 0.27 cents to 120.55 cents/pound late Wednesday morning, while December dropped 0.72 cents to 124.97. August feeder cattle futures tumbled 1.22 cents to 145.32 cents/pound, while November dove 1.17 cents to 149.82.
In contrast, to the cattle market, optimism about the short-term situation boosted CME hog futures Wednesday morning. The fact that country prices have risen dramatically over the past 2-3 weeks has almost surely translated into support for nearby futures, especially since their premiums to spot values have declined drastically during that time. June hog futures climbed 0.62 cents to 91.92 cents/pound in late Wednesday morning trading, while December futures gained 0.20 cents to 78.15.