The tight old crop situation seemingly boosted corn futures again Wednesday morning. The expiring July contract led the way higher and apparently offset the bearish effect of ongoing Corn Belt rainfall on new crop prices. The strong ethanol production total on the latest EIA report probably supported yellow grain prices as well. July corn futures surged 6.25 cents to $6.63/bushel late Wednesday morning, while December rose 1.0 cent to $5.455.
Nearby soybean futures also benefited from old-crop tightness Wednesday. Talk of cash tightness was reportedly supplemented by technical factors in supporting the July future. However, the favorable production impact of the weather systems currently crossing the Corn Belt appeared to undercut the deferred contracts. Bulls may also be exiting positions ahead of the Friday morning release of the USDA Grains Stocks and Acreage reports. July soybean futures gained 3.5 cents to $15.2875/bushel just before lunchtime Wednesday, while July soyoil fell 0.38 cents to 46.76 cents/pound, but July soymeal inched up $0.5 to $459.3/ton.
News of Chinese demand likely supported wheat futures early Wednesday morning. That is, after several days of rumors, Chinese officials announced overnight that heavy rains damaged 10 million tonnes of recently harvested wheat, which will force the Asian giant to actively tap the international market. The rumors probably mitigated the bullish impact of the news. Conversely, surprisingly good results for the Kansas harvest are apparently weighing upon Chicago and KC prices. July CBOT wheat dropped 6.5 cents to $6.6925/bushel around midsession Wednesday, while July KCBT wheat slipped 6.25 cent to $6.99, and July MGE futures sank 5.0 cents to $8.0425.
Cattle futures proved surprisingly strong Wednesday morning. Despite generally negative influences and persistent concerns about continued seasonal weakness, the 2013 contracts rose rather significantly. U.S. dollar strength and wholesale weakness seem particularly negative for the short-term outlook at this point. Early equity gains and technical support in the wake of the surge seen last week are apparently encouraging bulls. August cattle jumped 0.90 cents to 122.02 cents/pound around midsession Wednesday, while December climbed 0.52 cents at 127.30. August feeder futures rallied 0.57 cents to 148.45 cents/pound, while November added 0.42 cents to 153.30.
Hog futures also advanced in early Wednesday activity. Although the cash markets have probably begun their traditional summer decline, wholesale values have remained quite strong. The large Tuesday afternoon rise seemingly explains the nearby futures gains posted this morning. July hog futures lifted 0.07 cents to 100.22 cents/pound around lunchtime Wednesday, while the December contract moved up 0.12 cents to 82.72.