Corn futures closed sharply lower on Wednesday. Rumors that China bought U.S. corn helped rally prices yesterday, but when they went unconfirmed today the market turned lower. Spillover weakness in wheat helped extend the losses in corn. Weather forecasts are generally favorable for the next week for crop development. However, some forecasts are still touting a period of hot and dry conditions at the end of June and early July. The July contract ended the limit 30 cents lower at $6.77 1/2 and December was 30 cents lower at $6.50 1/4.
Soybean futures were strongly lower on Wednesday. After rallying the past two sessions, profit-taking developed to push prices lower. Spillover pressure from the strong losses in corn and wheat were also bearish factors. Further losses were limited by uncertainty for this year’s crop and concern about the amount of acreage that will be lost due to flooding. July closed 18 1/2 cents lower at $13.30 1/4 and November was 17 1/4 cents lower at $13.32 1/2.
Wheat futures traded sharply lower on Wednesday. Profit-taking, seasonal winter wheat harvest pressure and improving crop prospects in Ukraine weighed on futures trade. A larger wheat crop in Ukraine will be bearish for U.S. wheat export prospects. Sluggish export demand remains a bearish fundamental factor. CBOT July closed 36 cents lower at $6.38 1/4, KCBT July was 32 1/4 cents lower at $7.71 1/4 and MGE July ended 39 1/4 cents lower at $8.63 1/2.
Cattle futures closed strongly lower on Wednesday. The market set back from the recent gains that had pushed the August contract to a seven-week high on Tuesday. Beef prices were higher again at midday, but there is concern that once wholesale demand for the July Fourth weekend is complete beef prices will slip. Current expectations are still for cash trade to be up $1-$2 this week as packer margins remain strong. June closed $1.93 lower at $11.28 and August was $1.45 lower at $111.70.
Lean hog futures traded lower on Wednesday. After hitting two-month highs on Tuesday, profit-taking developed to push prices lower. However, cash markets remain strong and or at or near record higher levels. Packer margins remain poor, but tight supplies of market ready hogs have forced plants to raise bids to fill slaughter needs. July closed 73 cents lower at $98.28 and August was 65 cents lower at $97.33.