After sustaining their Tuesday gains overnight, corn futures weakened late Wednesday morning. Recent talk of domestic supply tightness have recently provided considerable support, but wire service reports indicating more liquid conditions at elevators and ethanol plants seemed to undercut prices as lunchtime approached. May corn edged 0.75 cent higher to $7.2925/bushel late Wednesday morning, while December gained 2.0 cents to $5.6425.

Soybean futures rallied Wednesday morning, thereby seemingly reflecting trader expectations about Chinese actions after they canceled a large number of Brazilian orders (due to its logistical problems and resulting delays). An examination of possible Chinese actions after rescinding their purchases naturally suggested they would come to the U.S. for at least a portion of those shipments. May soybeans surged 11.25 cents to $14.1825/bushel late Wednesday morning, while May soyoil climbed 0.51 cents to 49.99 cents/pound, while May meal inched up $1.3 to $412.9/ton.

Persistent talk of vigorous wheat demand from both the domestic and export sectors boosted futures again Wednesday morning. Given the relative weakness of wheat prices when compared to the cost of corn, the traditional spring-summer harvest decline seems likely to be relatively small. That idea may be supporting the market. May CBOT wheat futures rose 5.25 cents to $7.2725/bushel around midsession Wednesday, while May KCBT wheat added 5.0 cents to $7.5675, and May MGE futures increased 2.0 cents to $8.0075.

Cattle futures suffered early Wednesday losses in response to news that recent CME weakness apparently persuaded cattlemen across the Great Plains to take 124-125 cents/pound for their cattle late Tuesday afternoon. Those represented 1-2 cent losses from the consensus price reached late last week. However, Chicago prices rebounded later in the morning, possibly due to the ‘sell the rumor, buy the fact’ trader activity. April cattle gained 0.02 cents to 125.32 cents/pound in late Wednesday morning trading, while August advanced 0.32 cents to 122.60. Meanwhile, April feeder cattle sank 1.12 cent to 137.25 cents/pound, and August lost 0.87 cents to 146.37.

Despite slipping into technically oversold conditions again Tuesday, hog futures continued their late breakdown Wednesday morning. Reports of sizeable losses at the direct markets west of the Mississippi River probably weighed upon the Chicago market, as did talk that packers were well supplied with animals into next week. Bulls have to be hoping for a rebound in wholesale prices in the near future. April hogs fell 1.20 cents to 77.02 cents/pound around mid-session Wednesday, while June dropped 1.00 cent to 87.27.