After rising modestly Tuesday, corn futures were mixed early Wednesday morning. Tight old crop supplies and spillover strength from the soybean market seemed to support the nearby contracts. Conversely, prospects for accelerated plantings next week seemed to weigh upon the new crop contracts. July corn were unchanged at $6.4075/bushel in early Wednesday trading, while December dipped 3.0 cents to $5.3625.
The persistence of tight supplies and firm cash market prices seemed to support the soybean complex in the face of negative international concerns Wednesday morning. Wire service reports highlighted the potential for reduced Asian soy demand in the weeks ahead, while others pointed to the potential for increased Indian plantings. The fact that beans, oil and meal were all moderately higher is a testament to their underlying strength. July soybean futures rose 7.25 cents to $13.895/bushel Tuesday night, while July soyoil gained 0.07 cents to 49.21 cents/pound, and July soybean meal climbed $2.9 to $406.2/ton.
Wheat futures built slightly upon their Tuesday gains in overnight trading, with strength spilling over from the corn and bean markets likely improving the atmosphere somewhat. Accelerating new crop plantings seemingly hurt the Minneapolis market, while talk of ballooning Indian supplies may have weighed upon the whole complex. July CBOT wheat futures edged 0.5 cents higher to $7.095/bushel early Wednesday action, while July KCBT wheat moved up 0.5 cents to $7.585, and July MGE futures slipped 0.25 cents to $8.095.
Wholesale beef prices fell significantly Monday, thereby seeming to confirm a downtrend started last Friday. And despite a sizeable bounce in choice beef cutout Tuesday afternoon, futures remained under pressure early Wednesday morning. Traders probably expect cash weakness later this week. June cattle gained 0.05 cents to 120.87 cents/pound overnight, while December dropped 0.20 cents to 125.50. August feeder cattle futures slid 0.10 cents to 146.45 cents/pound, while November lost 0.40 cents to 150.60.
Lean hog futures firmed up Tuesday and continued moderately higher early Wednesday morning. Seasonal cash and wholesale strength almost surely powered the rise. The afternoon pork report was particularly supportive, since only a big dip in pork belly values kept cutout from posting a major jump. Bacon weakness at this time is very likely to prove quite temporary. June hog futures seem set to begin their Wednesday pit session 0.42 cents higher, at 91.72 cents/pound, while December futures were unchanged at 77.95 overnight.
Cotton futures were mixed to weak Tuesday, then slipped modestly overnight. Traders still think the global situation apart from the massive Chinese stockpile is generally tight, which is keeping the market supported at rather elevated levels. However, the Indian situation seems to be weighing upon prices at the moment. For example, news of sales from official Indian stockpiles hit the newswires Tuesday night, which probably encouraged ICE selling. July cotton slid 0.15 cents to 87.00 cents/pound in early Wednesday morning action, while December slipped 0.03 cents to 85.94.