Corn futures were mixed Tuesday and again early Wednesday morning. Tight old crop supplies continue supporting the nearby July contract, whereas optimism about the pace of Corn Belt plantings weighed upon deferred futures. That is, it looks as if forthcoming weather will allow corn and soybean planting to be completed in something approaching a timely manner. July corn rose 2.0 cents to $6.625 per bushel in early Wednesday trading, while December dropped 4.0 cents to $5.49.
Soybean futures apparently reacted to the same forces affecting corn prices overnight. The expiring July future seemingly benefitted from old crop tightness, whereas the improved planting pace implies seedings will be completed without a great deal of damage to fall harvest prospects. July soybean futures sank 0.75 cents to $15.28/bushel early Wednesday morning, while July soyoil slipped 0.06 cents to 48.53 cents/pound, and July soybean meal added $0.1 to $452.6/ton.
Wheat futures sustained their steady-lower pattern from Tuesday into early Wednesday. Traders seem uncertain as to how to interpret the impact recent weather will have upon 2013 crops. They are also confused as to the ultimate impact of the recent finding of wild GMO wheat in Oregon. Japanese officials seem to be trying to calm the situation, but South Korean millers are refusing to accept U.S. wheat despite clean tests performed by government officials. July CBOT wheat futures dipped 1.0 cents to $7.08/bushel as the sun rose over Chicago Wednesday, whereas July KCBT wheat edged 0.25 cents higher to $7.51 and July MGE futures inched up 0.25 cents to $8.2125.
Ideas that traders have recently become too pessimistic about summer prospects for the cattle/beef complex seemingly boosted live cattle futures Tuesday. However, bears quickly regained their footing overnight, which probably reflected the persistence of recent wholesale losses. Much depends upon the outcome of cash trading later this week. June cattle slumped 0.37 cents to 120.57 cents/pound Tuesday night, while December fell 0.35 to 125.22. Meanwhile, feeder futures were mixed; the August contract rose 0.10 cents to 145.67 cents/pound, but November lost 0.27 cents to 150.52.
Hog traders rather obviously think the recent rally will persist through at least mid-June, since futures rose again in early Wednesday morning activity. They apparently paid more attention to the pork gains posted late Tuesday afternoon than to reports of cash weakness. Historical patterns imply seasonal price strength through mid-June. June hog futures advanced 0.22 cents to 96.75 cents/pound as traders prepared to begin the CME pit session Wednesday, while December was unchanged at 80.82.
Cotton futures rebounded dramatically Monday and Tuesday after having suffered sustained losses over the previous two weeks. The surge had a substantial technical component as well as a strong demand response to the preceding losses. Whether the market can sustain the upward push is very much open to question, especially if new crop U.S. plantings are completed in a timely manner. July cotton futures slid 0.43 cents to 84.13 cents/pound early Wednesday morning, while December skidded 0.75 cents to 84.69.