Corn market bulls seem to be overcoming bearish influences. Improved conditions look favorable for new-crop corn production, which is negative for the price outlook. Conversely, spillover bean strength and good exports are supporting bullish case. Futures are slightly higher at midday. July corn rose 3.0 cents to $4.775/bushel around midsession Thursday, while December gained 2.75 cents to $4.745.
Export data supported both new and old crop beans Thursday morning. The weekly USDA Export Sales report stated 2013/14 sales of beans, meal and oil above forecasts, thereby boosting old crop prices. A daily report indicated another big new-crop sale to China. Traders still doubt crop plantings are all that favorable. July soybeans leapt 24.0 cents to $15.2925/bushel late Thursday morning, while July soyoil soared 0.78 cents to 41.25 cents/pound, and July soymeal surged $6.4 to $504.5/ton.
The wheat markets couldn’t sustain Wednesday night firmness. Last night’s news didn’t seem particularly negative for the wheat markets, which probably enabled bean strength to spill over into the wheat pits. The weekly Export Sales data met expectations. Nevertheless, futures turned decidedly lower this morning; that probably reflected forecasts for improved winter wheat growing conditions and spring wheat plantings. July CBOT wheat futures dropped 6.0 cent to $6.5825/bushel shortly before lunchtime Thursday, while July KCBT wheat futures fell 10.0 cents to $7.515, and July MWE futures tumbled 8.5 cents to $7.3025.
Reports of cash cattle weakness apparently triggered CME selling. Although wholesale beef prices rose again yesterday, that strength didn’t translate into higher cash bids. In fact, Nebraska cattlemen sold a few animals for about 0.5-cent less than they had last week. That news seemingly triggered a drop in CME futures this morning. June cattle dipped 0.55 cents to 137.72 cents/pound in late Thursday morning action, while December stabilized at 145.90. Meanwhile, August feeder cattle dove 1.07 to 195.45 cents/pound, and October lost 1.22 cents to 196.20.
Wednesday’s cash and wholesale news undercut hog futures. CME lean hog futures rallied in apparent anticipation of larger seasonal gains yesterday. However, late-afternoon reports indicated the cash and wholesale markets had reversed a substantial portion of Wednesday’s CME gains, which is very likely playing a big role in today’s Chicago losses. June hog futures plummeted 1.67 cents to 118.25 cents/pound around midsession Thursday, while December sank 0.50 to 94.80.