Ag markets mixed in the wake of WASDE

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Corn futures fluctuated wildly just after the WASDE report was released Wednesday, but ultimately moved moderately lower in response. The initial price surge apparently resulted from a surprisingly low U.S. stocks estimate for the end of the current crop year. However, the USDA also boosted its forecast for global corn stockpiles later this year rather dramatically, which dragged prices back down once again. May corn was trading just 1.0 cent higher at $6.4525/bushel by late Wednesday morning, while December slipped 1.5 cents to $5.3875.

The soybean market apparently rallied initially in response to WASDE results indicating larger U.S. crushings and exports during the months ahead. However, as in the corn pit, prices turned decidedly lower soon thereafter, since the USDA indicated global soybean carryout could substantially exceed trade estimates. May soybeans were trading 1.25 cents lower at $13.9425/bushel around mid-session Wednesday, while May soyoil dipped 0.11 cents to 49.87 cents/pound, and May meal edged $1.1 lower to $393.7/ton.

Wheat futures also swung rather dramatically in reaction to the USDA WASDE report. The immediate rise probably marked spillover strength from the corn and soy markets, due in part to the fact that the wheat stocks figure virtually matched pre-report forecasts. But having the USDA also boost its predicted global carryout above all pre-report estimates was not a supportive result, which very likely dragged the wheat complex lower. May CBOT wheat futures dropped 9.75 cents to $6.99/bushel by late Wednesday morning, while May KCBT wheat fell 11.25 cents to $7.3525, and May MGE futures dove 12.75 cents to $7.87.

Cattle futures were mixed to lower Wednesday morning, with wire services reporting traders were becoming cautious about the outcome of cash trading this week. And while wholesale prices have firmed this week, the prospect of wet, cold weather dominating the Great Lakes region and the Northeast this weekend seemingly implies continued delays in the start of the grilling season. June cattle dipped 0.47 cents to 121.22 cents/pound late Wednesday morning, while December fell 1.05 cents to 127.42. May feeder cattle futures dropped 1.25 cents to 143.50 cents/pound, and August sank 1.17 cents to 150.40.

Ongoing cash firmness seemed to boost hog futures again Wednesday morning, especially after preliminary reports indicated swine were trading steady to one-half cent higher. On the other hand, CME prices backed away from their early highs around mid-morning, which probably reflected the concurrent weakness in the cattle pit. The lightly traded May hog contract surged 0.67 cents to 87.97 cents/pound in late morning action Wednesday, while June contract added 0.27 cents to 90.12.

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