Corn and bean futures followed wheat higher Wednesday morning. There’s little fresh news concerning corn at this point, although the tense Black Sea situation may be boosting grain prices. Still, CBOT corn traders seemed to take their lead from rising wheat prices as the morning passed. Futures may simply be bouncing from oversold levels. September corn rebounded 7.25 cents to $3.635/bushel around midsession Wednesday, while December rallied 7.5 to 3.7475.
The soy complex also came back from overnight lows. As with corn, bean and product futures appear to be following wheat higher. However, the likelihood that the fall crop will smash all records may limit upside potential. Nearbys are still under short-term MAs as well. September soybean futures bounced 9.75 cents to $10.9175/bushel by late Wednesday morning, while November futures gained 9.25 cents to $10.75. September soyoil advanced 0.25 cents to 35.82 cents/pound and September soymeal added $3.5 to $359.2/ton.
The wheat markets are acting well, having overcome an early test. Wheat futures staged an impressive rebound Tuesday afternoon. The move seemed technical and pragmatic in nature, since little news seemed supportive. The gains continued overnight and accelerated this morning. The fact that CBOT futures have topped resistance associated with their 40-day moving averages may bode well for a short-term follow-through. September CBOT wheat jumped 18.0 cents to $5.705/bushel shortly before lunchtime Wednesday, while September KC wheat surged 18.0 cents to $6.6075/bushel, and September MWE wheat vaulted 19.5 to $6.4875.
Cattle futures slipped again in early Wednesday trade. CME cattle remained weak this morning. Industry suspicions that seasonal weakness will come to the fore were given fresh life by news of flat-lower wholesale quotes Tuesday afternoon. October live cattle declined 0.22 cents to 155.42 cents/pound in Wednesday morning action, while December skidded 0.12 cents to 155.77. Meanwhile, September feeder futures slumped 0.52 cents to 220.20 cents/pound, and November feeders lost 0.45 cents to 217.70.
Hog futures couldn’t sustain their early surge. Cash hog and pork quotes were mixed to lower Tuesday afternoon, but ideas that the market may soon firm apparently triggered a strong early-morning rebound. Unfortunately for bulls, most contracts have given back those early gains. That seemingly bodes ill from a technical standpoint. October hog futures slipped 0.27 cents to 101.40 cents/pound late Wednesday morning, while December was flat at 93.97.