Corn futures bounced modestly Tuesday night. After apparently resuming its downtrend Tuesday, the corn market posted a modest bounce in overnight trading. Reports that a South Korean firm had bought corn from ADM after a competitor had rejected an offer at lower prices may have been viewed as a sign of demand strength. September corn rose 2.0 cents to $4.5725/bushel early Wednesday morning, while December bounced 1.0 cent to $4.4825.
The soy complex proved surprisingly weak Wednesday morning. There seemed to be little news especially pertinent to the soybean outlook Tuesday night, although modest improvements in the weather forecast might have caused the sizeable losses suffered by the soybean and product markets. News of Asian palm oil weakness may also have weighed upon prices, but Tuesday’s technical failure at resistance may be the real reason for the slide. September soybeans dove 10.75 cents to $12.47/bushel just after sunrise Wednesday, while November beans fell 8.25 to $12.195. September soyoil dropped 0.20 cents to 42.42 cents/pound, and September soymeal sank $3.5 to $398.3/ton.
The wheat markets continued struggling early Wednesday morning. Wheat futures followed the corn market to multi-month lows Tuesday, but proved unable to rebound in concert with the yellow grain market overnight. There seemed to be a dearth of pertinent news, so wheat traders may have taken their lead from the sizeable losses suffered by soybeans. September CBOT wheat slid 1.0 cents to $6.2725/bushel in early Wednesday action, while September KCBT wheat skidded 2.25 cent to $6.94, and September MGE futures edged 0.75 cent lower to $7.3175.
Cattle futures seemingly resumed their recent advance Tuesday night. Cutout values rose modestly Tuesday afternoon, which probably encouraged bullish traders to expect another round of cash gains later in the week. Conversely, traders are very much aware of the premiums already built into the Chicago market. October cattle advanced 0.32 cents to 128.40 cents/pound around dawn Wednesday, while December added 0.22 cents to 130.20. September feeder cattle were steady at 157.70 cents/pound, but November sagged 0.15 cents to 160.50.
Lean hog futures continued climbing in Wednesday morning action. Although the latest cash and wholesale news was not terribly supportive, the CME swine market resumed its late advance overnight. Bulls rather obviously think triple tops on the late-2013 charts will not hold and are very likely hoping to see a bullish breakout during the days ahead. October hog futures gained 0.35 cents to 86.87 as trading got underway Wednesday, while December lifted 0.35 cents to 83.60.
Cotton futures turned downward from Tuesday’s highs. Recent USDA data has been quite supportive of cotton futures, thereby exaggerating the bullish technical breakout posted last week. However, Chinese officials announced overnight that its July cotton imports had suffered a 16.6% annual decline, which clearly undercut bullish demand scenarios. October cotton futures dipped 0.31 cents to 91.28 cents/pound in early Wednesday trading, while December slipped 0.11 cents to 91.61.