Corn futures edged higher Tuesday night. The corn market built upon its Tuesday bounce from fresh three-year lows overnight. Wire service sources cited concerns about wet weather hanging over the Corn Belt and its potential impact upon the fall harvest. Talk of strong Chinese buying probably boosted prices as well. December corn futures rose 1.0 cent to $4.445/bushel early Wednesday morning, and May added 0.5 cent to $4.6475.
The soy complex also proved quite firm last night. Industry concerns about the impact of wet weather upon the laggardly Corn Belt also seemed to support soybean and product prices early Wednesday morning. Bulls may have been reacting to the surprisingly large September crush figure posted by NOPA yesterday. The fact that palm oil continued its recent rally very likely pulled soyoil higher. November soybeans climbed 5.0 cents to $12.72/bushel around dawn Wednesday, while December soyoil surged 0.38 cents to 41.04 cents/pound, and December soymeal lifted $0.7 to $403.1/ton.
Chinese news probably supported the wheat markets. After talk of a cut in Indian export prices and spread unwinding undercut wheat futures Tuesday, wheat futures rebounded modestly this morning. The bounce probably stemmed from a statement from a major Chinese grain trader, who said the Asian giant could import as 5.0 million tonnes of wheat during the current marketing year. December CBOT wheat edged up 0.75 cent to $6.865/bushel Tuesday, and December KCBT wheat gained 0.25 cent to $7.565, while December MGE futures were unchanged at $7.5025.
Cattle futures moved mostly lower in early Wednesday action. CME traders seem ambivalent about this week’s cash prospects, especially after country prices rose sharply last week. The Tuesday afternoon delivery report had mixed connotations. No new notices were posted and all those listed Monday were reclaimed. The fact that they weren’t demanded by packers didn’t particularly help the bullish cause. December cattle futures slipped 0.02 cents to 132.72 cents/pound early Wednesday morning, while April was flat at 135.27. Meanwhile, November feeder cattle sank 0.25 cents to 167.25 cents/pound, and January slid 0.17 to 166.57.
The hog market stalled after Tuesday’s surge. Nearby hog futures rallied strongly yesterday, which probably represented a reaction to the sizeable discount built into the December contract price. Still, the cash market’s history of fourth-quarter weakness is still a fact of life, so few traders could have been terribly surprised by the overnight setback. December hog futures sagged 0.07 cents to 87.72 cents/pound in early morning CME action, while April skidded 0.02 cents to 90.07.
Cotton futures remained surprisingly strong Wednesday morning. Cotton futures defied negative influences to close slightly higher yesterday. And despite a Chinese report stating that country’s September cotton imports had suffered a 23% annual decline, ICE prices rose again overnight. That may have marked a reaction to concurrent equity index strength and US dollar slippage. December cotton inched up 0.15 cents to 83.86 cents/pound around sunrise Wednesday, while March improved by 0.04 to 84.73.