Corn is trying to bounce from oversold levels. Corn futures bounced from fresh five-month lows yesterday, thereby sending a tentative reversal signal on its candlestick charts. It’s clearly oversold technically, so a short-term rally wouldn’t be particularly surprising. July corn gained 2.25 cents to $4.41/bushel Tuesday night, while December added 1.5 cents to $4.41.
The soy complex is mixed to higher Wednesday morning. Old-crop bean and meal futures led the soy complex higher overnight, which probably reflected reduced farmer selling in response to recent prices declines. Meanwhile, resurgent palm values are boosting the oil market. New crop prices were mixed to lower, thereby representing industry concerns about a huge fall harvest. July soybeans rebounded 8.5 cents to $14.0675/bushel in early Wednesday action, while July soyoil climbed 0.32 cents to 40.00 cents/pound, and July soymeal lifted $4.3 to $455.0/ton.
Wheat markets posted across-the-board gains. Concerns about the quality of U.S. winter wheat have been growing along with recent moisture totals, since excessive rainfall as the crop ripens can have serious consequences for the grain. When combined with the persistent selling suffered recently, the latest bounce makes considerable sense. July CBOT wheat futures rallied 5.0 cents to $5.8675/bushel as Wednesday dawned over Chicago, while July KCBT wheat ran up 3.25 cents to $7.1575 and July MWE futures edged 3.25 higher to $6.87.
Surging beef values may be supporting cattle futures. The Chicago cattle market seemed to lose its upward momentum Tuesday as trading anticipated traditional early-summer price weakness. However, beef values followed Monday’s big rise with another major gain yesterday afternoon, which translated into fresh futures strength. August cattle advanced 0.07 cents to 145.80 cents/pound early Wednesday morning, while December slipped 0.07 to 150.72. Meanwhile, August feeder cattle dipped 0.42 cents to 207.42 and October sank 0.27 to 208.42.
CME hog futures are dropping despite supportive data. Tuesday’s cash and wholesale reports indicated across-the-board gains, but that seemingly did little to diminish the big losses posted last night. We suspect industry analysts have begun bearishly construed estimates for the June 28 Hogs & Pigs report. On the other hand, one could argue that a technical bounce in now due. August hog futures fell 0.52 cents to 127.52 in early Wednesday trading, while December plunged 1.60 cents to 93.25.
Cotton futures followed nearby July higher Tuesday night. The expiring July cotton contract surged to four-week high yesterday in what seemed like a technically-driven move. It topped major chart resistance in the process and might be headed significantly higher. That prospect may be the reason for new crop gains as well, despite favorable growing conditions over much of the country. July cotton vaulted 0.74 cents to 90.80 cents/pound shortly after ICE trading accelerated Wednesday morning, while December cotton improved by 0.31 to 76.63.