The tight old crop situation boosted July corn futures again Wednesday. The expiring July contract diverged from its deferred counterparts, which apparently felt the bearish effect of ongoing Corn Belt rainfall. The strong ethanol production total on the latest EIA report probably boosted the July contract while limiting losses in the deferreds. July corn futures surged 7.75 cents to $6.645/bushel late Wednesday afternoon, while December sagged 0.5 cent to $5.44.
Nearby soybean futures also benefited from old-crop tightness Wednesday. Talk of cash tightness was reportedly supplemented by technical factors in supporting the July soybean future and virtually all of the soymeal contracts. However, the favorable production impact of the weather systems currently crossing the Corn Belt appeared to undercut the deferred soybean contracts. The oil market apparently suffered from Asian palm oil weakness, as well as its position on the wrong side of the crush spread. July soybean futures climbed 9.0 cents to $15.3425/bushel at its Wednesday settlement, whereas July soyoil dove 0.57 cents to 46.63 cents/pound; July soymeal powered $4.5 higher to $463.3/ton.
Reports of good winter wheat yields undercut futures prices Wednesday. News that Chinese officials may need to import about 10 million tonnes of wheat to replace recently harvested grain ruined by heavy rains supported U.S. futures Wednesday morning. However, late rumors to that effect robbed the news of market-moving power. Ultimately, favorable Great Plains weather and talk of surprisingly large winter wheat yields in Kansas depressed futures values. July CBOT wheat dropped 8.75 cents to $6.67/bushel as trading wound down Wednesday, while July KCBT wheat plunged 10.0 cents to $6.9425, and July MGE futures sank 10.25 cents to $7.99.
Cattle futures proved surprisingly strong Wednesday. Despite generally U.S. dollar strength and sliding beef values, the 2013 contracts rose rather significantly. Equity gains, technical support in the wake of the surge seen last week and anticipation of seasonal strength apparently encouraged bulls. August cattle closed 1.05 cents higher at 122.17 cents/pound Wednesday afternoon, while December advanced 0.60 cents at 127.37. August feeder futures rallied 1.05 cents to 148.92 cents/pound, while November jumped 0.92 cents to 153.77.
Hog futures proved unable to sustain early Wednesday gains. Although the climbing wholesale markets provided considerable support for the Chicago market, the strong likelihood that cash markets have begun their traditional summer decline apparently carried the day for CME bears. July hog futures settled 0.20 cents lower at 99.95 cents/pound as pit trading concluded Wednesday, while the December contract was unchanged at 82.60.