Corn futures built on overnight gains Wednesday morning. Bullish corn traders were reportedly reacting to steady cash quotes this morning, with current harvest delays apparently limiting immediately available supplies. Concurrent wheat and soy gains may also be encouraging buying. December corn futures rose 7.0 cents are $4.4525 late Wednesday morning, while May futures gained 6.25 cents to $4.655.
Cash firmness apparently boosted soybeans in early trading. The combination of strength spilling over from the wheat market and reports of firm country prices seemingly pushed the soy complex substantially higher Wednesday morning. Chatter concerning short-term harvest delays probably supported prices. However, soybean oil futures couldn’t build upon strength spilling over from overnight gains in the Asian palm oil market. November soybean futures jumped 13.75 cents to $13.16/bushel around midsession Wednesday, while December soyoil dipped 0.08 cents to 41.44 cents/pound, and December soymeal surged $7.5 to $423.6/ton.
Talk of a tightening global situation seemed to provide continual support for the wheat markets. Traders continue citing the potential for strong demand from Brazil and China. Conversely, the impact of crop problems in the Black Sea region and Argentina might be exaggerated if the latest forecasts for potential drought in Australia prove accurate. December CBOT wheat futures climbed 6.25 cents to $7.07/bushel in early Wednesday trading, while December KCBT wheat futures leapt 9.5 cents to $7.75 and December MWE futures marched up 8.25 cents to $7.65.
Seasonal concerns may have robbed the cattle market of upward momentum Wednesday. Cash prices surged to records around $132/cwt (cents/pound) this morning, which might easily have sent cattle futures soaring. Instead, CME prices turned mostly lower this morning, which probably reflected industry concerns about the market’s history of late-October weakness as grocers begin shifting their attention to hams and turkeys for Thanksgiving. December cattle slipped 0.07 cents at 132.90 as lunchtime neared Wednesday, while April sagged 0.37 to 135.12. November feeder cattle sank 0.25 cents to 167.60 cents/pound and January feeders skidded 0.17 to 167.85.
Talk of cash weakness apparently undercut hog futures. Although traders in the hog and pork complex are expecting substantial seasonal weakness through much of late 2013, cash prices fell significantly for a second straight day Tuesday. They were also called lower this morning. The losses may signal greater downside potential than has previously anticipated, especially if forthcoming supplies meet USDA forecasts. December hog futures tumbled 0.42 cents to 88.15 cents/pound by late Wednesday morning, while April lost 0.15 cents to 90.40 cents/pound.