Corn prices closed 3 cents lower on Wednesday. Trade in the market was very volatile today with prices posting double digit losses at one point. However prices were able to bounce back and close above $8 dollars. Spillover pressure from tumbling soybean prices and weak demand weighed on prices much of the session. Updated weather forecasts are predicting rains for certain portions of the Midwest however, traders believe it’s too late to help the severely damaged crop. The market will continue to see support as drought conditions linger and rainfall is expected to be below average in August.
Soybean futures closed 7 to 18 cents lower on Wednesday. Volatile trade characterized the soybean market today with prices down by as much as 50 cents at one point. Although weather forecasts are predicting much needed rains across the Midwest, drought conditions are still anticipated to linger for a few more weeks. The rain will be very beneficial for the bean crop but traders are not sure whether the crop can bounce back from weeks of hot dry temperatures. Consequently, yield estimates are expected to decline below USDA’s July projection of 40.5 bushels per acre.
Wheat futures closed 8 to 15 cents lower on Wednesday. Wheat futures followed the corn and soybean markets lower today. Traders will continue to monitor the global supply situation, especially wheat production in the Black Sea Region. Today, leading Russian officials indicated that Russia remains on track to meet normal export expectations despite recent reductions to output levels. Spring wheat harvest is well under way with expectations for good yields which will add pressure to prices at MGE.
Live cattle closed mostly lower on Wednesday. The market closed lower today due to futures premium to cash and undeveloped trade in the cash market. Although cash prices are expected to be higher than last week, lack of trade development at midweek kept prices on the defensive the majority of the session. Weakness in the grain complex and lower midday beef cut outs capped market prices as well.
Lean hogs closed mostly lower on Wednesday. Pull back in the corn market and lower cash prices held hog futures lower throughout the session. Traders remain concerned as the outlook for the remainder of 2012 remains bearish and demand for pork products is sluggish headed into the 3rd and 4th quarters.
Cotton futures closed lower on Wednesday. Cotton futures closed lower as grain markets tumbled and news that U.S. Federal Reserve downplayed any idea for future stimulus measures to boost the economy. Traders continue to keep an eye on the Indian cotton production situation as well as deteriorating cotton crop in Texas.