Corn futures were slightly higher early Wednesday. Two South Korea Feed Manufactures each bought a cargo U.S. corn for delivery May 1. Sales of an additional cargo or two may follow. Otherwise, the news is light. The market continues to grind out a possible harvest low against the backdrop of record production (14 billion bushels). At the same time demand is improving led by stronger exports and feed use. December corn futures were 2.25 cents higher at $4.2075/bushel while May was 2.75 higher to $4.355.
Soybean futures rebounded in overnight trading. There was not a great deal of news Tuesday night. Chinese cancelled purchases of 300,000 tonnes of 2013/14 beans on Tuesday, which can be a negative warning of more cancellations ahead. However, in early 2013, China bought almost 3 million tonnes of US beans after it had cancelled over 500,000 tonnes in a short period of time. Higher Asian palm oil values supported the soyoil prices. January soybean futures were up 9.75 cents to $13.39/bushel; December soyoil rose 0.11 cents to 40.46 cents/pound, and December soymeal surged $6.2 to $456.4/ton.
Wheat markets also rallied in concert with the equity markets on Wednesday morning before the Thanksgiving holiday. How would recent colder than normal temperatures in parts of the Plain affect the winter wheat development probably raised some concerns. Fortunately, there are no notable damage reports yet. December CBOT wheat futures gained 4.25 cents to $6.5075/bushel, and December KCBT wheat futures increased 4.75 cents to $7.09, and December MWE futures edged up 2.75 to $6.98.
Cattle futures edged higher in early action Wednesday with futures trading in the upper portion of Tuesday’s range. Cutouts closed firm on Tuesday following a strong performance Monday suggesting beef demand is improving as retailers prepare for the Christmas season. Higher cutouts should support cash and futures prices. Tuesday’s futures rally has improved the technical outlook, but hasn’t eliminated risk of a near-term setback. December cattle futures are up .10 cents to 132.05 with April .20 cents higher 133.875. Meanwhile, January feeder cattle are .325 cents higher at 164.725 cents/pound, and March feeders are .25 higher at 164.55.
Hogs futures are higher early on Wednesday, but remain near the midpoint of a consolidation pattern that has persisted the past two weeks following the sharp break from the October high. Cash prices are firm, but futures are carrying a premium to cash which is providing a significant amount of wiggle room for futures. Weights are still high, but ideas are they may be peaking. The trade is still struggling to determine the extent of impact that PEVD will have in the industry. A close below 84.90 cents/pound would be negative technical signal for December contract. In early trade December hogs were .225 cents higher at 85.85 cents/pound while April was .05 cents higher to 93.70
Cotton futures came under pressure of profit-taking after two days’ impressive gains. However, the rally of the equity markets as well as the weakness exhibited by the US dollars held strong supports to the fiber market. December cotton fell 0.15 cents to 77.70 cents/pound, while March cotton declined 0.30 to 78.84.