Crop futures diverged from livestock markets Wednesday night

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Crop markets rallied to varying degrees Wednesday night. The ongoing industry of the Midwest corn and soy crops is continuing, with Wednesday’s corn results looking quite large and seeming likely to maintain downward pressure on prices. Nevertheless, prices rose modestly overnight, with nearby corn futures again tracking their short-term moving averages. September corn inched up 1.0 cent to $3.605/bushel early Thursday morning, while December added 1.0 to $3.685.

The soy complex moved unanimously higher. As with corn, the forthcoming soy harvest looks set to smash records, so reports to that effect aren’t really news. Conversely, persistently robust demand seems to offering nearby support. Talk on that score may have supported the complex last night. September soybean futures climbed 10.5 cents to $11.3025/bushel shortly after dawn Thursday, while November futures gained 4.25 cents to $10.4225. September soyoil rose 0.07 cents to 32.93 cents/pound, and September soymeal ran up $4.7 to $407.3/ton.

European news may be supporting wheat prices. Nearby CBOT wheat futures are bumping up against major moving average resistance, but the complex managed to move higher in the face of that selling. There was little obviously bullish news, but traders may have been reacting to reports that France’s excessive late-summer rains are forcing it to import milling wheat. September CBOT wheat advanced 3.0 cents to $5.4225/bushel Wednesday night, while September KC wheat surged 4.75 cents to $6.235/bushel, and September MWE wheat rallied 6.5 to $6.1675..

Cattle futures are facing persistent selling pressure. Beef cutouts declined again and a few Nebraska cattle apparently traded around $152/cwt Wednesday afternoon. That news, along with the bearish technical implications of yesterday’s CME breakdown seem to be weighing on prices again this morning. October live cattle futures dipped 0.25 cents to 145.15 cents/pound in early Thursday trading, while December futures slumped 0.40 to 148.05 cents/pound. Meanwhile, September feeder futures plunged 1.30 cents to 209.95 and November futures lost 1.20 to 208.35.

The hog market is also proving very weak. The ongoing collapse in cash hog and wholesale pork values continued Wednesday, so the CME hog pit was fertile ground for selling spilling over from the cattle market. Futures kept dropping overnight as traders anticipated more of the same during the days ahead. October hogs fell 1.07 cents to 91.42 cents/pound early Thursday morning, while December dove 1.35 cents to 85.07.

Cotton futures are following through upon Wednesday’s technical breakout. The cotton market turned sharply higher yesterday after bulls proved able to decisively penetrate short-term moving average resistance. The surge continued overnight, with the most-active December contract now testing its 40-day MA resistance. Its ability to top that selling is very much open to question, especially with a big harvest looming. December cotton jumped 0.79 cents to 66.60 cents/pound shortly after sunrise Thursday, while March futures lifted 0.55 cents to 67.06.

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