Corn futures finished modestly higher on Wednesday. Prices edged higher, garnering support from increasing talk of lower yields and production estimates for this year’s crop. Rain in the Northern Midwest should cool temperatures off a little and will be favorable for pollination. U.S. ethanol production is up again this week, further supporting prices. September was 1 3/4 cents higher at $6.91 1/2 and December was 4 3/4 cents higher at $6.91 1/2 as well.
Soybean futures closed lower Wednesday. The market was pressured by favorable weather forecasts for the next two weeks, which point toward rain in the U.S. Midwest and lower temperatures, which will be beneficial for the crop as weather becomes increasingly critical heading into August. Weakness in the stock market and strength in the value of the dollar were bearish today as well. August was 7 1/4 cents lower at $13.75 3/4 and November was 8 1/4 cents lower at $13.80 1/2.
Wheat futures ended higher Wednesday. Prices pushed higher today supported by reports from the spring wheat crop tour which point toward yields about 3.5 bushels per acre below year-ago levels for same parts of the growing region. Asian wheat buyers are showing interest in boosting purchases this month. CBOT Sep was 10 3/4 cents higher at $7.04 3/4, KCBT Sep was 7 3/4 cents higher at $7.88 1/4 and MGE was 12 cents higher at $8.51.
Cattle futures settled lower Wednesday. Futures fell in response to lower cash market prices on Tuesday, which were down $1 from a week ago at $107 per cwt. Hot temperatures over the next few days will send more cattle to market as feedlots will not want to feed out cattle that are not putting on additional weight due to the heat. This is pointing toward lower cash prices this week, and in turn weighing on futures. August was 63 cents lower at $111.08 and October was 70 cents lower at $115.45.
Hog futures ended mixed on Wednesday. Uncertainty over China’s demand weighed on futures today. China’s pork demand has been strong, but prices were down this week, the first week-to-week decline since April. The market garnered some support from Tuesday’s higher pork cutout, which surged to an all-time high, exceeding $101 per cwt. Cash hog prices also rose on Tuesday to nearly $98 per cwt. August was $1.45 higher at $101.93 and October was 28 cents lower at $91.45.