Ag markets were narrowly mixed Wednesday morning
The corn market continued sliding Tuesday night. There wasn’t any particularly bearish news, especially with the federal government shutdown curtailing domestic reports. Ultimately, the advancing harvest is very likely depressing local markets and undercutting Chicago prices in the process. December corn slipped 1.75 cents to $4.3725/bushel early Wednesday morning, and May lost 1.5 cents to $4.5825.
The soy complex was mixed in early Wednesday trading. Talk of improved U.S. crop conditions and the accelerating harvest reportedly weighed upon the soybean complex Tuesday night, but beans and meal bounced in early morning action. The rebound was probably powered by pragmatic and technical considerations, whereas the bearish global vegoil situation apparently depressed soyoil values. November soybeans gained 8.0 cents to $12.76/bushel around dawn Wednesday, whereas December soyoil lost 0.24 cents to 40.03 cents/pound, and December soymeal climbed $5.3 to $408.6/ton.
The wheat markets moved generally higher again overnight. No specific news emerged overnight, but market observers continue pointing to vigorous export demand for U.S. grain. The technical situation also seems supportive of a sustained advance. December CBOT wheat edged up 0.25 cent to $6.815 bushel in early Wednesday trading, while December KCBT wheat added 1.5 cents to $7.465, and December MGE futures rose 1.25 cents to $7.38.
Cattle futures continued their decline Wednesday morning. The livestock markets are being severely handicapped by the lack of USDA information. Traders still seem to anticipate late-week slippage in country cattle values, which probably reflects anecdotal reports. We tend to expect muted volatility in the livestock pits during the shutdown. December cattle futures sagged 0.10 cents to 131.80 cents/pound early Wednesday morning, while April dipped 0.10 cents to 134.47. Meanwhile, November feeder cattle advanced 0.22 cents to 166.27 cents/pound, and January ran up 0.22 to 165.42.
Talk of firmer wholesale prices may be supporting hog futures. Again, the lack of USDA news is very likely limiting activity in the hog pit. Futures declined moderately Tuesday in apparent response to talk of cash weakness. The swine complex bounced overnight, which seemingly reflected talk of firmer wholesale prices. Unfortunately, solid information is rather rare at the moment. December hog futures lifted 0.22 cents to 86.12 cents/pound in early Wednesday action, while April improved 0.30 cents to 89.12.
Cotton futures seemed to rally in concert with soybeans this morning. There was little fresh news concerning the fiber market, but that actually wasn’t terribly unusual. We are inclined to think concerns about potential rain damage to Texas cotton still in the boll are supporting the market somewhat. Bulls may also be reacting to sustained U.S. dollar weakness. December rallied 0.42 cents to 87.02 cents/pound soon after sunrise Tuesday, while March rose 0.36 to 86.75.