Corn futures bounced modestly Tuesday night. After dipping to three-year lows Tuesday, corn futures rebounded somewhat in overnight trading. Industry sources suggested bargain hunting by prospective users and short-covering sparked the recovery. September corn rose 0.75 cent to $4.73/bushel early Wednesday morning, while December inched up 0.25 cent to $4.595.
The soy complex was mixed in early Wednesday trading. Most soybean and meal contracts rallied in concert with the corn market Wednesday morning, which probably reflected technical and pragmatic factors as much as anything else. Meanwhile, renewed palm oil weakness sparked fresh selling in the soyoil pit. September soybeans gained 4.5 cents to $11.98/bushel as the sun rose over Chicago Wednesday, while November beans added 1.0 cent to $11.6825. September soyoil slid 0.26 cents to 41.95 cents/pound, whereas September soymeal improved $2.8 to $374.4/ton.
Wheat continued its recent pattern of moving opposite corn. As with the other crops, the forthcoming spring wheat crop promises to be quite large. Moreover, a record U.S. corn crop promises to weigh upon most crop and grain markets. The fact that Tuesday’s bounce couldn’t carry the nearby contracts back above their respective 10-day moving averages reflects current technical weakness as well. September CBOT wheat slipped 2.5 cents to $6.48/bushel in early Wednesday trading, while September KCBT wheat declined 2.5 cents to $6.995, and September MGE futures lost 3.0 cents to $7.365.
The cattle complex was mixed to higher early Wednesday morning. Cattle futures apparently benefitted from spillover hog strength Tuesday, but traders may also be becoming more optimistic about short-term cash prospects. The fact that choice cutout values rose significantly yesterday may also boost futures today. October cattle advanced 0.22 cents to 124.90 cents/pound just after dawn Wednesday, while December added 0.20 to 127.50. September feeder cattle futures crept up 0.15 cents to 157.80 cents/pound, but November sank 0.57 to 160.10.
Lean hog futures kept rallying in overnight action. Persistent cash and wholesale gains are rather clearly boosting the CME market. The fact that deferred futures are still trading at substantial discounts to the CME index is probably spurring additional buying. October hog futures climbed 0.40 cents to 86.85 at early Wednesday morning, while December moved 0.22 cents to 83.07.
Cotton futures traded firmly again Tuesday night. The rise may simply have reflected strength spilling over from corn and soybeans, but bulls also seem to be trying to push nearby futures out of their recent narrow trading ranges. They may face a tough go in that regard, since late equity weakness implies diminished economic prospects and weak apparel demand. October cotton futures were untraded at 85.82 cents/pound in early Wednesday action, while December edged up 0.20 cents to 85.89.