Ag markets turned decidedly mixed Wednesday morning

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Favorable crop prospects seemed to renew pressure on CBOT corn. Talk that recent corn and wheat losses will reinvigorate demand boosted those markets Tuesday night, but yellow grain prices couldn’t be sustained this morning. Traders apparently resumed their recent sales in response to the favorable moisture situation across the Corn Belt. July corn slipped 2.5 cents to $4.5575/bushel late Wednesday morning, while December slid 2.5 cents to $4.5175.

The soy complex proved mixed around midday Wednesday. Favorable Corn Belt weather is also weighing on soybean futures, despite the fact that old-crop quotes aren’t really subject to the new crop situation. Ultimately, bulls and bears fighting it out over the July contract’s pivotal 40-day moving average are affecting the market as well. Strong buying is boosting oil and putting pressure on meal as crush spreads are unwound. July soybeans climbed 6.25 cents to $14.875/bushel late Wednesday morning, while July soyoil jumped 0.57 cents to 38.92 cents/pound, and July soymeal stalled at $499.6/ton.

Old-crop activity seems to be supporting the wheat markets. The improved U.S. moisture situation and bearish international fundamentals have depressed wheat prices lately. Traders now suspect those losses will trigger renewed export interest, whereas the lower returns are discouraging farmer sales. Futures are proving surprisingly firm as a consequence. July CBOT wheat futures rallied 3.5 cents to $6.16/bushel around midsession Wednesday, while July KCBT wheat advanced 5.75 cents to $7.135 and July MWE futures ran up 7.25 cents to $6.9175.

Cattle futures turned mixed late Wednesday morning. Buying from grocers is apparently proving quite strong on a seasonal basis, thereby playing a big role in recent CME gains. However, one has to wonder if packers will pay up for country cattle later this week, since fed cattle supplies are usually approaching their annual highs at this time. That probably explains today’s slippage in nearby futures. August cattle sagged 0.75 cents to 139.32 cents/pound as lunchtime loomed Wednesday, while December slid 0.47 cents to 145.927. Meanwhile, August feeder cattle dropped 0.90 cents to 197.40 cents/pound, and October sank 1.05 to 198.22.

Cash slippage seems to be weighing on Chicago hogs. Although the hog/pork industry is anticipating a big summer rally as seasonally strong demand is met by supplies truncated by piglet losses to PEDV disease, the cash markets and wholesale markets didn’t cooperate this morning. That seemed to trigger across-the-board CME losses. August hog futures fell 0.65 cents to 127.00 cents/pound in late Wednesday morning trading, while December plunged 1.10 to 93.65.

Poor export news may be undercutting cotton futures. The U.S. commerce department published its latest cotton export data this morning, with the latest figure, at 235,097 running bales, falling about 80,000 or 25% below the comparable year-ago figure. That news probably sparked today’s bearish ICE reversal. July cotton dove 0.94 cents to 86.42 cents/pound just before noon (EDT) Wednesday, while December cotton tumbled 0.51 to 77.59.

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