Corn futures began Wednesday in mixed fashion. The wave of corn market short-covering and bottom-picking begun after last Friday’s USDA reports seemed to continue in nearby futures Tuesday night. Deferred futures slipped modestly. The December contract is apparently bumping up against technical resistance associated with its 40-day moving average. December corn futures inched up 1.25 cents to $4.335/bushel in early Wednesday action, while May gained 0.75 at $4.5375.

Oil futures again supported the soy complex overnight. After surging in response to the USDA reports last week and to bullish export news Tuesday, soybean and meal futures dipped early this morning. In contrast, traders have become concerned about the global vegetable oil situation after recent weather systems damaged Southeast Asian palm oil prospects. Thus, soybean oil futures continued rising last night, thereby supporting beans and tending to undercut meal. January soybean futures slid 3.5 cents to $13.11/bushel early Wednesday morning, while December soyoil gained 0.21 cents to 40.96 cents/pound, and December soymeal lost $2.2 to $425.5/ton.

The wheat markets are trying to bottom. Last Friday’s USDA reports proved surprisingly negative for the wheat outlook, thereby extending the downtrend futures had carried into the reports. Ultimately, the late slowdown in exports seems to be dragging prices lower. Still, a look at the charts suggests the nearby contracts are trying to put in some significant lows. December CBOT wheat futures bounced 2.25 cents to $6.475/bushel around dawn Wednesday, while December KCBT wheat futures added 1.5 cent to $7.0475, and December MWE futures edged up 1.0 to $7.0225.

Slumping beef prices are undercutting cattle futures. Traders have rather clearly been hoping to see continued cash market gains later this week. However, those hopes were at least partially based upon bullish wholesale expectations. As a consequence, Tuesday’s sizeable beef losses may bode ill for mid-week futures trading. December cattle futures declined 0.02 cents to 132.65 cents/pound in early Wednesday electronic trading, while April futures slipped 0.02 to 134.97. Meanwhile, January feeder cattle rose 0.10 cents to 164.30 cents/pound, and March feeders added 0.07 cents to 164.27.

Firm pork quotes boosted hog futures Tuesday night. Falling midday cash quotes depressed hog futures Tuesday. However, the country losses later proved to be exaggerated, while pork cutout actually rose on the day. Consequently, the subsequent rebound isn’t terribly surprising. December hog futures crept up 0.02 cents to 87.22 cents/pound early Wednesday morning, while April lifted 0.02 to 93.35.

Cotton futures continued their late bounced overnight. The latest news seemed rather bearish for cotton, with the U.S. harvest still lagging and Chinese sourced talking about potential sales from state reserves possibly looming. Thus, the ongoing rally still seems technically driven. However, the overnight rise has the December contract bumping up against its 20-day moving average, which could prove rather formidable. December cotton climbed 0.47 cents to 78.35 cents/pound around sunrise Wednesday, while March cotton gained 0.18 cents to 78.40.