Ag markets proved quite changeable Wednesday morning
Talk of large stocks and warmer weather are reportedly depressing corn futures. Pre-report estimates for next Monday’s quarterly Grain Stocks report are seemingly running above prior expectations. In addition, forecasts for much warmer and wetter Midwest weather next week is increasing planting discussions. Both developments seem somewhat bearish. May corn sank 1.75 cents to $4.8475/bushel around midsession Wednesday, while December slid 2.75 to $4.835.
Cash firmness may be supporting beans and meal Wednesday. The soy complex suffered modest losses along with corn and wheat Tuesday night, but beans and meal rebounded around midmorning. The advance seemed largely technical in nature, but reports of reluctant producer selling and firming country prices may have played a role as well. May soybeans rallied 4.75 cents to $14.3275/bushel late Wednesday morning, while May soyoil declined 0.14 cents to 40.60 cents/pound, and May soymeal added $3.8 to $467.5/ton.
The wheat markets also focused on production prospects. Forecasts for improved rainfall over the central U.S. next week seemed to weigh upon nearby wheat futures Wednesday morning. Conversely, ideas that next Monday’s Prospective Plantings report will state wheat seeding intentions above last year appeared to depress the deferred contracts. May CBOT wheat futures fell 9.75 cents to $6.985/bushel in late Wednesday morning action, while May KCBT wheat futures dove 13.0 cents to $7.7875 and May MWE futures dropped 9.25 cents to $7.5375.
Cash strength is supporting cattle futures. News of firm cash trading provided a modest boost for the CME cattle market yesterday. Those southern Plains reports were followed by news of a $2.00/cwt advance in Nebraska prices later in the day, which is almost surely powering the gains being seen this morning. April cattle futures jumped 1.07 cents to 145.45 cents/pound just before lunchtime Wednesday, while August ran up 0.80 cents to 134.70. Meanwhile, April feeder cattle leapt 1.30 cents to 178.65 cents/pound, and August advanced 0.87 to 180.32.
Hog futures apparently posted a technical reversal Wednesday morning. Talk of cash and wholesale weakness seemingly triggered Tuesday’s big technical plunge in hog futures Tuesday. However, the afternoon reports proved much more supportive than was seemingly anticipated. Futures continued sliding in early morning action, but reversed to the upside as lunchtime loomed. April hog futures soared 1.80 cents to 123.45 late Wednesday morning, while June added 1.52 to 126.72.
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