Corn futures closed sharply lower on Wednesday. The market was pressured by favorable weather for crop development is forecast for the Corn Belt over the next couple of weeks. While corn acreage may be down from intentions, yield prospects are expected to improve. Fund selling helped extend losses once futures fell below technical support. Outside markets were also bearish as the stock market was strongly lower while the dollar index was higher. July ended 29 3/4 cents lower at $7.25 3/4 and December was 19 cents lower at $6.66.
Soybean futures traded steady to higher on Wednesday. Spillover selling in corn and strength in the dollar index weighed on soybean futures much of the day. Mostly favorable weather forecasts for crop development in the Midwest over the next couple of weeks also pressured futures. But futures rallied on the still tight ending stocks projections and uncertainty about the potential damage due to flooding in the Missouri River Valley. July closed unchanged at $13.68 and November was 3 cents higher at $13.66 3/4.
Wheat futures were strongly lower on Wednesday. Futures were pressured by spillover selling in corn, strong gains in the dollar index and some harvest pressure. The drought in the southern Plains has no doubt hurt yields, but harvest reports show generally good quality and some reports are coming in with better than expected yields. CBOT July closed 22 3/4 cents lower at $7.08 1/2, KCBT July was 20 1/2 cents lower at $8.19 1/ 4 and MGE July ended 31 1/2 cents lower at $9.37.
Cattle futures closed lower on Wednesday. The market was supported much of the day on active beef demand from wholesalers and ideas of steady to firm cash trade compared to the $105-$106 trade last week. But futures turned lower on the big decline in the stock market and the sharp gains in the dollar index. In addition, weakness in corn was bearish on ideas that cheaper feed costs could increase cattle feeding. June ended 8 cents lower at $104.20 and August was 50 cents lower at $111.03.
Lean hog futures closed mixed on Wednesday. Front end contracts were supported by the steady to higher cash markets and the 64 cent jump in pork cutout prices on Tuesday. But most deferred contracts were lower on pressure from strong losses in corn, weakness in the stock market and the rally in the dollar index. July ended 80 cents higher at $95.25 and August was 53 cents higher at $94.53.