Corn futures closed solidly lower on Wednesday. Fund long liquidation was triggered by strength in the dollar index and weakness in the stock market due to continued concern about European debt. Sharp losses in crude oil futures also weighed on futures. Lackluster export demand remains a bearish factor as ample global grain supplies are providing heavy competition. March closed 13 3/4 cents lower at $5.80 3/4 and May was 14 cents lower at $5.89 1/4.
Soybean futures traded strongly lower on Wednesday. Strength in the dollar index and weakness in the stock market triggered fund long liquidation in the soybean market. The dollar index has hit an 11-month high against the euro on further concern about the European debt crisis. Losses in crude oil futures also pressured the soy complex. NOPA crush for November was reported at 141.2 million bushels this morning, which was below pre-report trade estimates. January ended 18 1/2 cents lower at $11.00 and March closed 19 cents lower at $11.10.
Wheat futures were lower on Wednesday. Strength in the dollar index and weakness in the stock market led to a broad based sell-off in most commodity markets. Export demand for U.S. wheat is already sluggish and a stronger dollar will make U.S. supplies even less competitive. Global supply and demand fundamentals remain bearish and the U.S. continues to lose export market share to cheaper wheat, primarily from the Black Sea region. CBOT March closed 19 3/4 cents lower at $5.80 3/4, KCBT March fell 20 1/2 cents to $6.35 1/2 and MGE March ended 14 1/4 cents lower at $8.15 3/4.
Cattle futures closed mixed on Wednesday. The market turned mixed as traders are waiting for the cash market to develop. Futures were pressure much of the day by outside market pressure stemming from further concern about the European debt crisis. Packer processing margins remain bad despite some recent improvement in boxed beef prices. December ended 28 cents higher at $118.18 and February was 13 cents higher at $118.78.
Lean hog futures traded lower on Wednesday. Strength in the dollar index and weakness in the stock market pressured most commodity markets. Ideas that hog producers could be expanding amid strong export demand and some moderation in the price of feed also pressured prices. December closed 10 cents lower at $85.70 and February was 8 cents lower at $86.33.