Ag markets turned firm to higher Wednesday morning

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Favorable weather is still weighing on corn futures Wednesday. Corn continued their recent decline Tuesday, 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 apparently offset reduced corn buying. July corn edged up 2.0 cents to $4.755/bushel late Wednesday morning, while December added 1.75 cent to $4.7375.

Cash firmness and Chinese news powered Wednesday’s soy rebound. Soybean and product futures posted surprisingly losses Tuesday afternoon, but those were quickly reversed this morning. Talk of country bean and meal price firmness and technical support sparked overnight gains, which were then exaggerated by news of strong Chinese buying last month. July soybeans bounced 23.0 cents to $14.9275/bushel just before lunchtime Wednesday, while July soyoil rose 0.30 cents to 40.37 cents/pound, and July soymeal rallied $8.1 to $494.8/ton.

The wheat markets moved mostly lower this morning. Talked of improving moisture conditions in the Winter Wheat Belt is apparently weighing on CBOT and KCBT wheat futures today. Minneapolis prices are holding up somewhat better, possibly due to ideas that rainfall will further slow planting of the northern Plains spring wheat crop. July CBOT wheat futures sank 0.5 cent to $6.70/bushel in late Wednesday morning action, while July KCBT wheat futures fell 1.25 cents to $7.67, and July MWE futures slumped 0.25 cent to $7.38.

Tuesday’s big beef surge may be supporting cattle futures. Beef cutout values surged Tuesday; and while that seemingly did little to support cattle futures in overnight trading, futures firmed again this morning. Traders probably worry about a seasonal cash cattle weakness, but sustained beef strength could greatly mitigate the expected decline. June cattle inched up 0.12 cents to 138.87 cents/pound around midsession Wednesday, while December climbed 0.62 to 146.47. Meanwhile, August feeder cattle surged 1.12 to 197.05 cents/pound, and October advanced 0.57 cents to 197.67.

Big cash and wholesale gains are supporting CME hogs. The cash hog and wholesale pork markets had recently moved mixed to lower lately, but big Tuesday afternoon gains in both sectors have sparked renewed optimism in CME futures. Morning statements from Tyson executives probably encouraged bulls as well. June hog futures jumped 1.20 cents to 119.80 cents/pound late Wednesday morning, while December rallied 0.40 cents to 95.20.

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