Corn futures settle mixed on Wednesday. Corn futures settled mostly higher. The July contract settled down against the increasing dollar index. The market was supported by news that Japan and South Korea are looking to replace wheat with corn in animal feed; increasing demand for U.S. corn. Concern that weeks of dry hot weather has damaged the corn crop provided a lift in prices. Gains were limited by instability in outside markets and weakness in the wheat and soybean markets.
Soybean futures settled mixed on Wednesday. Soybeans futures traded both sides of the market today closing mostly lower with the exception of the November contract. The November contract was up slightly on renewed weather concerns. Overall, the market was pressured by the adverse economic situations in Europe and China. News that China is likely not to stimulate its economy weighed heavily on the market.
Wheat futures settled 3 to 8 cents lower on Wednesday. Wheat futures closed lower on pressure from outside market factors. The downgrade of the Spanish banking system, economic slowdown in China and the increasing dollar index pulled prices down. Rains in Russia and Australia were bearish for the market as concerns over global wheat supplies eased. However, losses were limited by lower than expected winter wheat ratings based on yesterday’s USDA crop progress report.
Cattle futures settled sharply lower on Wednesday. Cattle futures settled $1.40 to $1.60 on the close. Sharp declines in the market are mostly attributed to weakness in equity and commodity markets as a result of the euro zone debt crisis. Beef cutouts were higher at midday but were not enough to ward off outside market pressures.
Lean hog futures settle 20 cents to $1.02 higher on Wednesday. Hog futures rallied to close higher despite the pressure from outside markets. Prices were lifted as traders anticipate gains in the cash market and wholesale pork prices.