Ag markets posted varying gains Wednesday
Surging wheat prices seemingly boosted corn futures Wednesday. Although ongoing progress in the current harvest is apparently boosting country corn supplies, CBOT futures rose modestly. That almost surely reflected strength spilling over from the wheat market. December corn closed 6.0 cents higher at $4.5475/bushel Wednesday, and May added 5.75 cents to $4.755.
Talk of strong export demand supported the soy complex Wednesday afternoon. Talk of weak cash markets undercut soybeans in early Wednesday action, but news of a sizeable export sale seemed to spark the subsequent rebound. Strength spilling over from the wheat market and bargain hunting in the bean pit powered prices moderately higher. November soybeans advanced 9.25 cents to $13.2175/bushel at Wednesday’s close, while October soyoil dipped 0.02 cents to 41.82 cents/pound, and October soymeal climbed $4.5 to $418.6/ton.
The wheat markets continued rising in Wednesday trading. 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 surged 12.25 cents to $6.705/bushel Wednesday afternoon, while December KCBT wheat jumped 13.25 cents to $7.1825, and December MGE futures leapt 13.25 cents to $7.1825.
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 enabled bulls to sustain the upward momentum through Wednesday morning. Prices remained higher despite the mixed midday beef report. October cattle futures settled up 0.22 cents to 127.55 cents/pound as Wednesday’s pit session ended, while December lifted 0.05 cents to 131.27. Meanwhile, October feeder cattle sank 0.85 cents to 162.92 cents/pound, and January sagged 0.57 cents to 163.05.
The nearby contracts led hog futures higher Wednesday. After soaring 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, the nearby hog contracts continued climbing today. However, talk from industry sources seemed to confirm the mixed nature of Tuesday afternoon reports, which limited strength in the Chicago market. October hog futures rallied 1.20 cents to 93.70 cents/pound Wednesday afternoon, while December rose 0.53 cents to 88.60.