Concerns about the large harvest seemed to weigh upon corn prices Wednesday. Despite firm cash prices and Tuesday night news of active South Korean buying of U.S. corn, futures turned downward Wednesday morning. Concerns about the sheer size of the record harvest may have been exaggerated by spillover weakness from the wheat pit. December corn futures closed 1.75 cents lower at $4.3025 Wednesday, while May futures lost 2.75 cents to $4.50.
Rising vegoil prices are supporting the soy complex. Vegetable oil markets rallied again Wednesday on concerns about the Indonesian palm crop. Strength spilling over into soyoil futures probably boosted soybeans as well, especially in light of firm country market reports. Meal is suffering from its position on the wrong side of the crush spread. November soybean futures surged 8.5 cents to $12.875/bushel Wednesday, and December soyoil jumped 0.65 cents to 41.62 cents/pound, while December soymeal edged $1.0 higher to $411.8/ton.
Indian news seemed to undercut wheat futures. India is sitting on huge stockpiles of low quality wheat, so today’s news that the Indian government has cut the floor price for wheat exports essentially increased supplies on the international market. The news was not unexpected, which probably limited its market impact. December CBOT wheat futures fell 6.5 cents to $6.75/bushel in late Wednesday trading, while December KCBT wheat futures slid 4.0 cents to $7.4775, and December MWE futures sagged 4.5 to $7.32.
Worries about demand strength reportedly undercut cattle futures Wednesday. Surging beef prices have boosted cattle prices in the country and in Chicago lately. However, traders are apparently becoming concerned about the sustainability of beef demand with other meats being significantly cheaper. Bulls may also have been evening up positions ahead of tomorrow’s USDA September Cattle on Feed report. December cattle plunged 1.15 cents to 133.12 cents/pound at their Wednesday settlement, while April dropped 0.40 to 134.15. November feeder cattle plummeted 1.80 cents to 164.95 cents/pound and January feeders crashed 2.10 to 164.80.
Sliding wholesale prices also weighed upon hog values. Although country cash markets were called firm Wednesday morning, pork prices dropped sharply at midday. Those losses may have inspired subsequent selling, since they may presage sharp seasonal losses in early November. December hog futures tumbled 0.95 cents to 90.40 cents/pound as Wednesday’s CME session ended, while April dove 1.30 cents to 94.45 cents/pound.