Technicians are probably helping corn market bulls. Talk about the slow U.S. corn harvest and the potential losses of grain and quality seems to be spurring fresh buying Wednesday morning. Bulls may also be benefiting from technical buying after futures bounced from moving average support Tuesday. December corn futures rallied 3.75 cents to $3.5975/bushel in early Wednesday trading, while May moved up 3.5 to $3.82.
The agronomic situation is also spurring soy buying. As with the corn market, delays to the US harvest are hurting the productive potential of the crop. Moreover, severe Brazilian dryness is delaying that country’s bean plantings, which bodes ill for productivity as well. Nearby bean futures pushed above their 40-day moving averages overnight, thereby seeming to set the stage for a bullish breakout. However, a failure at current levels might spark a reversal. November soybean futures surged 13.0 cents to $9.7725/bushel Tuesday night, while December soyoil rose 0.34 cents to 32.10 cents/pound, and December soymeal jumped $9.2 to $352.1/ton.
Wheat markets are again following corn and beans higher. Strength spilling over from the corn and soy pits is reportedly boosting wheat prices as well. Traders also cited fund short-covering for a portion of the advance. On the other hand, Tuesday’s news that U.S. grain had been shut out of a large Egyptian tender seems likely to limit gains. December CBOT wheat edged up 2.25 cents to $5.215/bushel early Wednesday morning, while December KC wheat added 1.75 cents to $6.04/bushel, and December MWE wheat gained 2.5 to $5.715.
Cattle futures moved mostly lower Tuesday night. Although many expect fresh cash market records to be set again this week, Tuesday’s CME reversal had to give bulls pause. The flat-lower beef readings posted later in the day weren’t encouraging either. Bulls likely worry about a seasonal setback with Thanksgiving looming. December live cattle futures sank 0.07 cents to 166.97 cents/pound in predawn Wednesday action, while April futures dipped 0.15 to 164.50. Meanwhile, November feeder cattle futures slipped 0.30 cents to 233.62 cents/pound and January feeders skidded 0.25 cents to 228.00.
Hog futures held up surprisingly well in overnight trading. Both cash hog and wholesale pork values suffered sizeable losses again Tuesday, thereby indicating the traditional seasonal breakdown is in full swing. The fact that futures proved quite firm last night suggests traders think they’ve anticipated the bulk of the decline. December hog futures slid 0.05 cents to 88.40 cents/pound early Wednesday morning, while April hogs crept up 0.07 to 87.32.
Cotton seems to be rallying in concert with the other crop markets. The cotton market again suffered a dearth of news Tuesday night. The financial markets also stalled, thereby robbing ICE traders of direction. Ultimately, the comparatively slow harvest also appears to be supporting fiber values. December cotton futures ran up 0.52 cents to 63.31 cents/pound just after dawn Wednesday, while March futures lifted 0.34 cents to 62.25.