Corn futures remained strong Wednesday morning. Despite Tuesday night news that Chinese officials had rejected five recent shipments of U.S. corn contaminated with an unapproved GMO strain, corn futures continued rising in Wednesday morning trading. The midmorning report of record Canadian wheat and canola production seemed to undercut the wheat and soy markets, but seemingly did little to discourage corn market bulls. March corn rose 4.75 cents to $4.3625/bushel by late Wednesday morning, while May added 4.75 to $4.4425.
Soybeans are struggling with the Canadian canola news. The soy complex reportedly rallied in response to vigorous technical buying early Wednesday morning, but seemingly set back around midmorning in response to the morning release of Canadian crop production data; that stated that country’s record canola even larger than previously thought. And yet, prices surged again by late morning. January soybean futures climbed 9.5 cents to $13.2925/bushel around midday Wednesday, while January soyoil climbed 0.21 cents to 40.32 cents/pound, and January soymeal gained $2.4 to $431.2/ton.
The Canadian wheat news undercut the wheat markets. Wheat futures had also traded firmly overnight, but the Canadian production figure depressed prices rather substantially. Stats-Canada stated their 2013 crop at 37.53 million tonnes, which easily topped forecasts averaging 33.8 million. March CBOT wheat futures declined 2.75 cents to $6.655/bushel in late Wednesday morning action, while March KCBT wheat futures tumbled 3.0 cents to $7.085, and March MWE futures dropped 5.5 to $6.99.
Cattle futures are trading firmly at this point. The threat of wintry Great Plains weather to the performance of feedlot animals in that region is probably supporting the CME market at this point. If cattle fare poorly in those conditions, market-ready supplies could quickly dwindle and send prices sharply higher. Conversely, week beef prices seem to limiting bullish moves in Chicago. February cattle futures ran up 0.22 cents to 134.32 cents/pound just before lunchtime Wednesday, while the April contract edged up 0.12 to 134.97. Meanwhile, January feeder cattle inched up 0.02 cents to 164.87 cents/pound, and March feeders lost 0.20 to 165.05.
Deferred hog prices proved surprisingly strong this morning. The weekly report on Iowa-Southern Minnesota hogs showed weights rose only slightly last week, thereby suggesting recent concerns about excessive suppliers were overdone. That may explain why the expiring December contract continued Tuesday’s slide, whereas deferred futures made a concerted move higher. February hog futures edged up 0.27 cents to 89.25 cents/pound around midsession Wednesday, while June gained 0.37 to 99.85.