Bears had the upper hand in the corn market Wednesday morning. Tuesday’s surprising corn bounce was seemingly sparked by technical and pragmatic factors. However, traders still seem to regard the trend as bearish, with a record crop now harvested and occupying domestic silos. Thus, CBOT prices could face considerable resistance to rally attempts. December corn futures dipped 0.75 cent to $4.17/bushel late Wednesday morning, while May slid 0.25 to $4.345.
Resurgent oil prices are seemingly supporting beans this morning. Talk of bargain hunting and renewed optimism about global demand for Asian palm oil boosted that soyoil prices Tuesday night. That strength spilled over into soybean futures in early trading, but traders seemed to react to corn weakness later in the morning. The meal situation seemingly remains tight, but that product is on the wrong side of crush spread at this point. January soybean futures edged 1.25 cents lower to $12.75/bushel in late Wednesday morning action, while December soyoil rallied 0.23 cents to 40.22 cents/pound, and December soymeal skidded $1.6 to $407.3/ton.
News of a sizeable Egyptian purchase only provided temporary wheat support. The wheat markets bounced in response to news that a large Egyptian tender had included 110,000 tonnes of U.S. soft red winter wheat, thereby suggesting American grain is now competitive in the global market. Weak corn prices and talk that wheat feeding will suffer as a consequence reportedly contributed to the subsequent reversal. December CBOT wheat futures slumped 2.5 cents to $6.4775/bushel around midsession Wednesday, while December KCBT wheat futures lost 2.75 to $6.9575, and December MWE futures declined 0.75 to $6.97.
Cattle futures turned mixed in midmorning action. Tumbling wholesale prices seemingly triggered the early-week breakdown in live cattle futures, since the beef losses suggest underlying demand is proving rather feeble. Traders are probably worried about a technical follow-through to the downside. December cattle futures inched up 0.02 cents to 130.97 just before lunchtime Wednesday, while April futures bounced 0.32 to 132.55. Meanwhile, January feeder cattle moved up 0.47 cents to 162.87 cents/pound, and March feeders gained 0.30 cents to 162.95.
Last week’s modest weight increase probably sparked CME hog buying. Spiking hog weights have depressed hog futures lately, since the increases suggested the supply of market-ready animals was plentiful. However, the latest weight report indicated a modest seasonal rise last week, which very likely prompted the CME buying this morning. December hog futures climbed 0.37 cents to 85.80 cents/pound late Wednesday morning, while April added 0.40 to 93.15.
Chinese news sparked a cotton bounce Wednesday morning. Reports that the current Chinese cotton crop is falling short of USDA projections, as well as a delay of an announcement concerning anticipated government cotton sales supported ICE futures this morning. Long position rolling may have limited the December gain. December cotton advanced 0.46 cents to 76.34 cents/pound just before midday Wednesday, while March cotton leapt 1.34 to 78.90.