Ag markets moved generally higher Tuesday night
South Korean buying is boosting corn futures. A low key announcement of a sizeable South Korean purchase of U.S. corn seemed to boost CBOT futures Tuesday afternoon. Prices rose again overnight in response to news that South Korean millers were pushing their purchases up to 500,000 tonnes for the two-day period. Having rainfall slow the Corn Belt harvest is probably encouraging bulls as well. December corn futures edged up 2.75 cents to $4.3475 early Wednesday morning, while May futures rose 2.0 cents to $4.5475.
The soy complex also sustained its Tuesday bounce. Soy markets continued rising Tuesday night, with the prime mover apparently being persistent palm oil gains. Indeed, soyoil prices are threatening to stage a technical breakout to the upside. Bulls were reportedly encouraged by the fact that the U.S. harvest is nearing completion, thereby implying a limit to supplies beyond the short-term. November soybean futures surged 6.75 cents to $12.8575/bushel in pre-dawn Wednesday trading, while December soyoil jumped 0.54 cents to 41.51 cents/pound, and December soymeal bounced $1.4 to $412.2/ton.
Talk of increased demand reportedly powered wheat gains. Although the situations in the Black Sea region and Argentina have apparently improved lately, traders still view potential demand for wheat as likely to prove quite vigorous. When combined with the corn and soy gains, it wasn’t terribly surprising to see golden grain values rising as well. December CBOT wheat futures advanced 2.75 cents to $6.84/bushel Tuesday night, while December KCBT wheat futures added 2.75 cent to $7.545, and December MWE futures gained 2.0 to $7.385.
Surging beef prices boosted cattle futures again Tuesday night. Recent news of wholesale price strength was sustained again Tuesday afternoon. The idea that packers will be more willing to increase their bids for country cattle later this week almost surely encouraged renewed CME buying last night. December cattle rallied 0.22 cents to 134.50 cents/pound in early Wednesday action, while April inched up 0.05 to 134.60. November feeder cattle slipped 0.07 cents to 166.67 cents/pound and January feeders slumped 0.05 to 166.85.
Sliding cash and wholesale prices undercut hogs again overnight. Although the swine industry apparently remains optimistic about the intermediate term price outlook due to probable PEDV losses, short-term considerations are a different story. The fact that cash and wholesale prices suffered moderate losses Tuesday seemingly depressed futures Tuesday night. December hog futures declined 0.12 cents to 91.22 cents/pound early Wednesday morning, while April tumbled 0.40 cents to 95.35 cents/pound.
Harvest pressure is reportedly depressing cotton prices. Monday’s news that the U.S. cotton harvest is well underway seemed to weigh upon prices yesterday and again last night, with traders apparently focusing upon the implied increase in domestic supplies. On the other hand, storms are forecast for Texas later this week, which will likely delay the harvest and might damage some cotton still in the bolls. December cotton futures sank 0.19 cents lower at 78.15 cents/pound around sunrise Wednesday, while March cotton lost 0.19 to 79.96.