Talk that the domestic corn situation remains very tight reportedly boosted corn futures Tuesday and again Wednesday morning. News that Canadian corn is flowing into the U.S. and that country cash premiums have risen well above CBOT values are probably supporting the market. Persistently wet, cool weather over the Corn Belt is all suggesting delayed plantings this spring, thereby potentially supporting deferred futures. May corn rose 2.75 cents to $7.3125/bushel in early Wednesday trading, while December gained 2.5 cent to $5.6475.
Product strength seemed to boost soybean futures early Wednesday morning. The palm oil market reportedly reached a one-week high on export strength overnight, which very likely supported soybean oil values. Meanwhile, Chinese soybean meal prices reportedly rallied in response to widespread bargain hunting. Thus, soybean futures rebounded despite burgeoning concerns about the bearish impact of the huge South American harvest. May soybeans marched 9.5 cents higher, to $14.1625/bushel in early trading, while May soyoil advanced 0.16 cents to 49.64 cents/pound, and May meal ascended $3.4 to $415.0/ton.
Wheat futures rallied for the eighth time in ten days Tuesday, then resumed its climb overnight. Talk of reduced competition on the export front and strong demand from domestic feedlots is apparently powering the move upward. Overhead resistance around the 40-day moving averages (MAs) of the nearby contracts is now looming rather large. May CBOT wheat futures surged 9.25 cents to $7.3125/bushel in pre-dawn trading Wednesday morning, while May KCBT wheat added 6.25 cents to $7.58, and May MGE futures gained 5.75 cents to $8.045.
Cattle futures traded weakly again Tuesday, with nearby April futures dropping to a fresh contract low. That news apparently persuaded cattlemen across the Great Plains to take 124-125 cents/pound for their cattle late Tuesday afternoon, which in turn generally weighed upon CME live cattle futures overnight. Feeders continued their recent breakdown as well. April cattle actually inched 0.07 cents higher, to 125.37 cents/pound in early Wednesday morning trading, while August slipped 0.17 cents to 122.10. Meanwhile, April feeder cattle dove 1.10 cents to 137.27 cents/pound, and August plunged 1.45 cents to 145.80.
Concerns about seasonally weak pork demand are apparently dragging hog futures downward. Prices dropped Tuesday on those worries and continued sliding and continued lower in early Wednesday action after the Tuesday afternoon pork cutout report indicated a reversal of weekend gains. Traders seem unlikely to become interested in the long side of the Chicago market until they seen signs of sustained strength at the cash and/or wholesale levels. April hogs slid 0.20 cents to 78.02 cents/pound in overnight trading, while June dipped 0.17 cents to 88.10.
After dropping sharply Monday, cotton futures rose modestly Tuesday and again early Wednesday morning. Actually, the rise was rather impressive when viewed in light of talk that China will sell 3 million tonnes (about 13.8 million bales) over the next nine months. News that the Indian government is set to release 2.2 million bales to its domestic market might also be viewed as bearish. Bulls are almost surely looking for the early-March cotton rally to resume quickly. May cotton added 0.25 cents to 91.38 cents/pound in early Wednesday trading, while December slid 0.16 cents to 88.10.