Corn: Wednesday’s crude oil surge seemingly sparked a commodity comeback. Today’s news seemed negative for corn, with fine weather, U.S. dollar strength and increased ethanol stocks weighing on the market in early trading. And yet, CBOT prices rebounded in late-morning action, possibly in reaction to rumors of a Saudi pipeline explosion and sharp rise in crude oil futures. December corn futures bounced 5.75 cents to $3.7025/bushel at Wednesday’s close, while May gained 5.75 to $3.9175.
Soybeans: The soy complex rebounded from its early lows. Current conditions also appear bearish for the soy complex, but beans and products rebounded from early lows along with corn. Meal hardly participated in the early stages of the bounce, but clearly outperformed oil later in the day. The crude surge may have triggered the reversal, but lost influence when the pipeline rumor wasn’t confirmed. January soybean futures surged 10.5 cents to $10.205/bushel as Wednesday activity ended, while December soyoil sagged 0.35 cents to 32.72 cents/pound, and December meal rose $2.8 to $375.3/ton.
Wheat: Egyptian news likely weighed on the wheat markets. Wheat futures proved relatively weak Wednesday, lagging the corn and soy rebounds rather badly. That probably reflected midmorning news that U.S. wheat was once again shut out of a large Egyptian tender. U.S. grain is apparently less than competitive on the global market. December CBOT wheat slumped 5.75 cents to $5.2475/bushel in late Wednesday trading, while December KC wheat fell 5.75 cents to $5.845/bushel, and December MWE wheat fell 9.25 to $5.5975.
Cattle: Demand concerns apparently weighed on cattle futures Wednesday. The cattle/beef situation remains very tight, as reflected by elevated fed cattle prices. However, traders worry that recent beef weakness reflects declining demand as consumers shift to pork and chicken. Midday beef firmness did little to persuade buyers. December live cattle futures closed 1.45 cents lower at 165.20 cents/pound Wednesday afternoon, while April futures dove 1.02 to 165.25. Meanwhile, January feeder cattle futures plunged 1.40 cents to 230.20 cents/pound, and March feeders dove 0.97 to 227.55.
Hogs: Increasing supplies worry hog market bulls. The spot hog and pork markets have remained persistently weak lately, although pork quotes rose moderately at midsession. Still, CME traders worry that those the spot market trends will worsen if hog supplies post their usual seasonal surge during the weeks ahead. December hog futures declined 0.85 cents at 87.12 cents/pound in late Wednesday action, while April hogs dipped 0.60 to 88.10.