Corn futures closed lower on Wednesday. Despite some strength in the stock market and weakness in the dollar index, traders remain concerned about the global economy and the European debt situation. Some pressure was also noted today from a private corn production estimate that came in slightly above USDA’s October corn production estimate of 12.433 billion bushels. December ended 9 1/4 cents lower at $6.45 and March was 9 1/4 cents lower at $6.56.
Soybean futures were slightly higher on Wednesday in thin trading volume. Futures found supported from weakness in the dollar index and strength in crude oil futures and equity markets. Talk that China bought some U.S. soybeans was a bullish factor. But gains were limited by uncertainty about the global economy and the European debt crisis. Also a private production estimate for soybean production came in above USDA’s October projection of 3.060 billion bushels. November closed 1 1/4 cents higher at $11.93 1/2 and January was 1/4 of a cent higher at $12.02 3/4.
Wheat futures closed mostly lower on Wednesday. Winter wheat markets were pressured by spillover weakness in corn and technical selling. The KCBt was lower on forecasts for some needed precipitation in the southern Plains next week. However, the MGE was higher in thin volume amid tight supplies of spring wheat. CBOT December closed 6 1/2 cents lower at $6.23 1/2, KCBT December was 5 1/2 cents lower at $7.13 while MGE December was 4 1/2 cents higher at $9.10 1/4.
Cattle futures closed mostly higher on Wednesday. Follow-through buying from the strength in the cash market on Tuesday and optimism for increased exports to Japan helped push prices higher. Reports say that Japan could begin importing U.S. beef 30 months or younger versus 20 months currently. The bounce in the stock market and weakness in the dollar were also supportive. December was 40 cents higher at $122.00 and February was 28 cents higher at $124.48.
Lean hog futures traded mixed on Wednesday. Front end contract traded lower due to the weak tone in the cash market and declining pork prices. Pork cutouts values were down 63 cents on Tuesday. Packer margins are favorable, but hog supplies remain ample and increased pork supplies are pressuring prices. December ended 68 cents lower at $86.88 and February was 35 cents lower at $89.73.