Favorable weather is weighing on corn futures once again. Corn futures proved rather weak Tuesday afternoon and again last night, thereby seeming to reflect forecasts for weather very favorable to planting completion and early growth. News of a huge increase in DDG sales to China likely boosted the nearby July contract. July corn inched up 0.5 cent to $4.74/bushel early Wednesday morning, while December lost 0.5 cent to $4.715.
Cash firmness seems to be supporting the soy complex Wednesday morning. Soybean and product futures posted surprisingly losses Tuesday afternoon, which technical selling seemingly playing a big role in the drop. However, bears couldn’t force the nearby contracts below major support. Moreover, country bean and meal prices remained firm, thereby suggesting the losses were overdone. The oil market is still suffering from Asian palm weakness. July soybeans bounced 6.75 cents to $14.765/bushel soon after dawn Wednesday, while July soyoil dipped 0.11 cents to 39.96 cents/pound, and July soymeal rallied $3.6 to $490.3/ton.
The wheat markets diverged somewhat Tuesday night. Improved moisture prospects seemingly depressed winter wheat futures somewhat overnight. In contrast, Minneapolis spring wheat futures rose modestly, which may reflect trader concerns about timely planting of the northern Plains crop. July CBOT wheat futures skidded 0.25 cent to $6.7025/bushel as Wednesday dawned over Chicago, while July KCBT wheat futures stalled at $7.6825, and July MWE futures rallied 5.75 cent to $7.44.
Cash concerns may be weighing on cattle futures. Beef cutout values surged Tuesday, that seemingly did little to support cattle futures in afternoon trading nor overnight. One has to suspect traders worry about a seasonal follow-through to last week’s sizeable cash decline. June cattle sank 0.17 cents to 138.57 cents/pound Tuesday night, while December dipped 0.12 to 145.72. Meanwhile, August feeder cattle advanced 0.47 to 196.40 cents/pound, but October slipped 0.02 cents to 197.07.
Big cash and wholesale gains are supporting CME hogs. The cash hog and wholesale pork markets have proven generally mixed to lower lately. However, both sectors posted sizeable gains Tuesday afternoon, thereby encouraging expectations for a long-awaited seasonal advance. Hog futures responded accordingly. June hog futures jumped 0.95 cents to 119.55 cents/pound in early Wednesday action, while December rose 0.27 cents to 95.07.
Cotton futures seemed to bounce from technical support Tuesday night. As has so often been the case lately, the cotton market is lacking for fundamental news. Bullish traders probably bought last night for two reasons. First, equity index futures rebounded strongly from Tuesday’s big drop. Second, both the July and December futures apparently found support at major moving averages yesterday. July cotton rallied 0.57 cents to 89.57 cents/pound shortly after sunrise Wednesday, while December cotton gained 0.25 to 82.17.