Ag markets moved mostly higher overnight
Renewed weather concerns boosted the corn market early Wednesday morning. Although recent weather forecasts include more Corn Belt rain, traders have doubts about those predictions. Overnight buying seemingly reflected those suspicions. September corn gained 0.25 cent to $5.00/bushel Tuesday night, while December rose 0.25 cent to $4.865.
Soybeans also bounced in early Wednesday trading. As in the corn market, traders doubt forecasts for short-term rainfall will prove particularly heavy or widespread. Given the soybean crop’s greater vulnerability to droughty conditions at this point, it isn’t terribly surprising to see the soy complex leading the way higher once again. September soybeans rallied 5.25 cents to $14.1925/bushel around sunrise Wednesday, while November beans edged up 3.0 to $13.735. September soyoil added 0.16 cents to 44.22 cents/pound, while September soymeal lifted $4.5 to $460.4/ton.
Wheat futures performed well again Tuesday night. It would be easy to assume that concurrent corn and soybean gains were boosting the wheat market again last night, but the golden grains were generally larger than those posted in the other pits. Ultimately, talk that global wheat demand is proving quite strong was punctuated by a major buying tender from Egypt, thereby encouraging fresh buying. September CBOT wheat inched 0.5 cent higher to $6.51/bushel in early Wednesday trading, while September KCBT wheat climbed 4.75 cents to $7.12, and September MGE futures advanced 5.5 cents to $7.35.
Wholesale strength seemingly supported cattle futures Tuesday night. Pessimism about the late August outlook and concurrent equity market losses depressed cattle futures Tuesday. However, the late afternoon USDA report indicated that cutout values had risen yesterday, which apparently sparked a fresh bout of optimism in the CME pit. October cattle futures crept up 0.20 cents to 126.92 cents/pound as the sun rose over Chicago Wednesday, and December ascended 0.12 cents to 129.90. September feeder cattle futures improved 0.30 cents to 155.57 cents/pound, while November moved up 0.17 to 158.02.
Late wholesale news undercut hog futures Wednesday morning. Despite general signs of recent weakness, Tuesday’s midsession pork reports were very strong, thereby boosting futures. However, the afternoon reports proved much less encouraging, which almost surely caused swine futures to reverse overnight. October hog futures fell 0.22 cents to 86.35 cents/pound early Wednesday morning, while December sank 0.25 cents to 83.30.
The cotton market seemed caught between competing influences Wednesday morning. Strength spilling over from the other crop markets probably supported cotton futures in early Wednesday action, but bulls seemed unwilling to commit very heavily to the long side with stocks threatening to add to Tuesday’s big drop. December cotton futures slipped 0.04 cents at 84.11 cents/pound just after dawn Wednesday, while March bounced 0.07 cents to 83.43.