Corn futures edged higher Wednesday morning. Tight old crop supplies reported translated into country firmness this morning, which may also have supported CBOT prices. Deferred futures also rose slightly, which probably reflected the supportive influence of rising wheat prices over the bearish implications of good growing weather. September corn futures inched up 1.75 cents to $4.9725/bushel just before lunchtime Wednesday, while December was rose 0.75 cent to $4.7825.
The soy complex had moved generally higher by late Wednesday morning. Old crop tightness seemingly boosted August beans, although slipping August soymeal values raise questions on that point. News of strong Malaysian palm oil exports during June seemed to boost oil and bean prices overnight, but the move faded with the coming of daylight. The general firmness in the face of ideal Corn Belt weather was rather impressive. August soybean futures jumped 13.5 cents to $13.6325/bushel around midsession Wednesday, while November beans added 1.0 cent to $12.04. August soyoil crept 0.06 cents higher to 42.17 cents/pound, whereas August soymeal dipped $1.1 to $428.1/ton.
Wheat futures posted moderate gains in early Wednesday trading. Talk of strong export demand probably offered some support, but traders also appear to be focusing upon the potential price impact of recent rains and the sprouting of lots of winter wheat that caused. Forecasts for ideal summer weather may have limited spring wheat gains. September CBOT wheat rose 7.5 cents to $6.6275/bushel late Wednesday morning, while September KCBT wheat surged 9.25 cents to $7.055, and September MGE futures gained 5.0 cents to $7.4225.
Live cattle futures resumed their Tuesday slide this morning. Traders probably believe the traditional seasonal rally in cash and wholesale prices will occur during the coming weeks and months, but they apparently have doubts about those markets’ ability to justify the premiums already built into CME prices. Lack of confidence about the result of this week’s cash trade is seemingly weighing upon futures at this point. August cattle fell 0.30 cents to 121.35 cents/pound as the lunch hour loomed Wednesday, while December sagged 0.17 cents to 128.20. August feeder futures gained 0.05 cents to 153.30 cents/pound, and November tumbled 0.35 cents to 159.20.
Hog futures rebounded from Tuesday’s surprising breakdown. Renewed concerns about seasonal weakness apparently weighed upon the hog and pork complex yesterday. However, the late Tuesday wholesale report indicated a sharp rise in pork cutout, which explains much of the subsequent rebound. The premium built into the CME index probably supported the August contract. August hog futures leapt 1.00 cent to 97.87 cents/pound Tuesday, while December advanced 0.42 cents to 81.02.