Corn futures apparently benefited from spillover strength Wednesday morning. Forecasts for fine harvest weather and surprisingly good yields are weighing upon the corn market at this point. However, prices rose slightly overnight, with traders crediting buying spilling over from the soy and wheat complexes. December corn rose 1.25 cents to $4.50/bushel in early Wednesday action, and May added 1.0 cents to $4.7075.
The soy complex rallied despite a lack of supportive news. Little real news concerning soybeans emerged Tuesday night, but that did not prevent soybean and product futures from rising rather significantly. One has to wonder if the advance is technical in nature, especially after the November soybean contract bounced from chart support associated with its 40-day moving average yesterday. November soybeans climbed 6.25 cents to $13.1875/bushel just after dawn Wednesday, while October soyoil moved up 0.06 cents to 41.90 cents/pound, and October soymeal gained $3.0 to $417.1/ton.
The wheat markets exhibited considerable strength again last night. Chinese wheat prices have reportedly reached record highs, thereby highlighting that country’s likely need to import grain in the near future. Moreover, Argentina’s winter wheat fields are being hit with potentially damaging frost, which might also reduce global supplies. December CBOT wheat advanced 4.5 cents to $6.6275/bushel early Wednesday morning, while December KCBT wheat lifted 5.75 cents to $7.1075, and December MGE futures surged 7.5 cents to $7.125.
Cattle futures continued their early-week advance. Bullish cattle on feed news and higher cash prices boosted cattle futures early this week, but persistent wholesale strength has enabled bulls to sustain the upward momentum. Whether they’ll be able to do so through the balance of the week is open to question. October cattle futures inched up 0.07 cents to 127.40 cents/pound in early Wednesday action, while December gained 0.07 cents to 131.30. Meanwhile, October feeder cattle added 0.10 cents to 163.87 cents/pound, whereas January sagged 0.15 cents to 163.47.
Mixed Tuesday afternoon news hampered hog market bulls last night. CME hog futures soared Tuesday on a combination of bullish cash and wholesale rumors, discounts to the exchange cash index and news that Smithfield shareholders had approved its takeover by Shuanghui. However, afternoon reports were not as supportive as bulls hoped, so the advance slowed overnight. October hog futures rallied 0.32 cents to 92.82 cents/pound early Wednesday, while December improved by 0.22 cents to 88.30.
Cotton futures followed the other crop markets higher. As with corn and soybeans, the cotton market is suffering from a general lack of news. Prices rose slightly Tuesday in response to Monday’s Crop Progress data, but cotton traders now appear to be trading on technical considerations. Specifically, the nearby contracts seem to be finding support around their respective short-term moving averages. December cotton edged 0.44 cents higher to 84.82 cents/pound soon after sunrise Wednesday, while March rose 0.22 at 84.51.