Corn futures closed 3 to 9 cents higher on Wednesday. Market prices eased after midday but still remain higher on weather worries. Weather forecasts have not changed 7 to 10 out for the U.S. Midwest. Midwest temperatures are forecasted to hit triple digits the remainder of the week with only slight chances for rain. The corn crop is currently in its critical pollination stage and in need of good rains to replenish soil moisture levels.
Soybean futures closed mixed on Wednesday. Soybean futures started to decline after midsession as weather forecasts adjusted. Above normal temperatures across the Midwest have dominated the corn and soybean markets; leaving the markets more vulnerable to price swings. Forecasters are calling for extended hot dry conditions across the Midwest, with no indication of favorable rains to relieve heat stressed crops. Weather forecasts are currently outweighing market fundamentals for row crops.
Wheat futures closed 3 to 8 cents higher on Wednesday. Wheat futures were supported by strength in the corn market and higher outside markets. The market brushed off harvest pressures to close on the upside today. Weather, although not domestic, is playing a part in wheat market rallies. Adverse weather in the Black Sea and Australian wheat production regions added additional strength to market prices.
Cattle futures closed sharply higher on Wednesday. Cattle futures closed strong posting gains well over $1 across contracts. Rising temperatures across the U.S. Plains states are negative in terms of feedlot performance but will support prices due to lighter carcass weights. Firm boxed beef prices also helped to prop up market prices.
Lean hog futures closed higher on Wednesday. The nearby live hog contracts closed moderately higher on futures discounts to cash prices. The market saw additional support from soaring grain prices and higher outside markets. The trade awaits Friday’s Quarterly Hogs and Pigs report, and is expecting to see an increase in both the breeding and marketing numbers.