Corn futures followed beans and wheat higher Wednesday morning. Little news concerning corn has emerged in the past few hours, which has seemingly caused traders to focus on technical factors and concurrent strength in the bean and wheat markets. The fact that the nearby contracts have pushed above their 10-day moving average seems to be encouraging additional buying. May corn climbed 3.75 cents to $4.90/bushel late Wednesday morning, while December rose 2.25 to $4.90.
Talk of robust demand is boosting the soy complex once again. Soybean and product futures continued Tuesday’s strong advance in Wednesday morning action, with wire service sources citing persistently strong demand for the move. Traders reportedly expect a low total on the March 31 USDA Grain Stocks report. Meanwhile, rebounding Asian palm prices are supporting soyoil. May soybeans jumped 13.5 cents to $14.3175/bushel just before lunchtime Wednesday, while May soyoil rallied 0.17 cents to 42.44 cents/pound, and May soymeal gained $3.9 at $459.7/ton.
The wheat markets turned strongly higher again this morning. After trading in mixed fashion overnight, wheat futures surged rather dramatically as the day progressed. Concerns about U.S. winter wheat conditions probably amplified the Chicago and Kansas City gains, whereas suspicions of substantially reduced 2014 Black Sea production appear to be powering spring wheat prices upward. May CBOT wheat futures surged 17.5 cents to $7.10/bushel in late Wednesday morning action, while May KCBT wheat futures leapt 19.5 cents to $7.8275 and May MWE futures rallied 15.0 to 7.565.
Nearby cattle futures appear to be struggling at old highs. Beef prices posted moderate gains Tuesday, which apparently spurred fresh bullish ideas about the short-term outlook and interest in nearby contracts. However, Chicago prices have proven unable to build upon yesterday’s rise; that seemingly reflects selling around old highs on the April chart. April cattle futures inched up 0.10 cents to 145.80 cents/pound around midsession Tuesday, while August slumped 0.25 cents to 135.15. Meanwhile, April feeder cattle sank 0.55 cents to 176.35 cents/pound, and August lost 0.07 to 179.30.
Hog futures proved quite mixed responded Wednesday morning. Tuesday afternoon cash and wholesale reports proved very strong once again, thereby seeming to set the stage for continued CME gains. However, while the nearby April contract and fall-winter futures rose significantly, the mid-year contracts faced consistent downward pressure. We suspect position rolling and spreading are causing those disparities. April hogs advanced 0.90 cents to 124.12 cents/pound by late Wednesday morning, while June declined 0.50 to 132.50.