Corn futures dipped Wednesday. Little fresh news concerning corn has emerged since Tuesday, which apparently spurred long liquidation ahead of forthcoming reports. The weekly Export Sales report comes out tomorrow, as does the latest CONAB report on Brazilian crop production. The monthly USDA WASDE report follows on Friday. July corn settled 3.5 cents lower at $5.14/bushel Wednesday, but December stalled at $5.095.
Talk of increased South American production and reduced demand depressed soy prices. Brazil’s USDA counterpart CONAB is set to release its latest estimate of that country’s 2013/14 soybean crop tomorrow, with many expecting a fresh record. Traders also suspect Chinese buying will slow during the coming weeks and months, with S.A. beans likely to flow into the U.S. this spring. July soybeans fell 13.25 cents to $14.4625/bushel at Tuesday’s settlement, while July soyoil sank 0.28 cents to 40.83 cents/pound, and July soymeal sagged $2.6 to $474.9/ton.
The wheat markets diverged somewhat in Wednesday trading. The wheat situation still seems bullish, with drought dominating the southern Plains winter wheat outlook and excess moisture slowing spring wheat plantings in the north. The Black Sea situation hasn’t improved either. Winter wheat futures declined despite the news, but Minneapolis prices rose modestly. July CBOT wheat futures skidded 1.25 cents to $7.3775/bushel Wednesday afternoon, and July KCBT wheat futures slid 4.25 cents to $8.415, while July MWE futures gained 1.75 to $8.065.
Persistent beef weakness seemingly weighed on cattle futures. Although many in the livestock/meat industry may be anticipating a seasonal bounce in beef prices as grocers buy for Memorial Day features, the latest wholesale news hasn’t been supportive. Indeed, midsession beef losses probably depressed CME prices this afternoon. June cattle dropped 0.72 cents to 137.57 cents/pound as Wednesday’s pit session ended, while December stumbled 0.42 cents at 144.20. Meanwhile, August feeder cattle dropped 0.57 cents to 190.67 cents/pound, and October fell 0.67 cents to 191.52.
Hog futures ignored supportive midsession news. Although the cash hog markets have stabilized this week, Tuesday’s late wholesale reports stated pork values almost 4.0 cents lower on the day. Such huge losses certainly won’t encourage pork packers to pay up for swine during the days ahead. However, pork prices rose somewhat at midday, and monthly export data looked bullish. June futures weakness in the face of that news wasn’t encouraging. June hog futures plunged 2.05 cents to 121.17 cents/pound at Wednesday’s settlement, while December lost 0.15 cents to 94.80.