Corn futures declined moderately Wednesday morning. A story indicating that China has rejected about 30% of recent corn shipments due to contamination with an unapproved GMO strain hit the newswires overnight, but CBOT futures reacted little. However, an ag industry advisory service boosted its estimate of 2014 U.S. corn plantings on a midmorning report, which pushed prices lower. March corn futures slipped 3.5 cent to $4.235/bushel by late Wednesday morning, while May sagged 3.75 cent to $4.315.
Talk of diminished exports may have undercut soybeans this morning. The soy complex also suffered from a general lack of news early this morning, but the supportive nature of recent reports, especially on the demand side, apparently encouraged fresh buying in the bean and meal pits. However, news that traders are expecting a weekly reduction on Thursday’s Export Sales report, as well as surprisingly high industry forecast for U.S. plantings next year seemingly sank bean and meal prices. January soybeans fell 13.0 cents to $13.335/bushel around midsession Wednesday, while January soyoil slid 0.03 cents to 39.28 cents/pound, and January soymeal declined $3.0 to $445.0/ton.
The wheat markets also turned lower around midmorning. Little fresh news concerning the wheat outlook emerged Tuesday night, which seemingly left the door open for persistent selling. Midmorning news that an industry firm had cut its estimate of 2013-14 winter wheat acreage seemed supportive, but futures widened their early losses. March CBOT wheat futures dropped 6.5 cents to $6.1325/bushel just before lunchtime Wednesday, while March KCBT wheat futures tumbled 5.25 cents to $6.5525, and March MWE futures dipped 1.0 to $6.49.
Cattle futures remained weak this morning. After surging early this week, choice beef cutout turned sharply lower yesterday afternoon. That news, along with nearby futures’ recent inability to top major technical resistance seemingly set a bearish tone for short-term prospects. February cattle futures edged down 0.25 cents to 132.72 cents/pound just before Wednesday’s lunch hour, while April futures stumbled 0.30 cents to 133.75. Meanwhile, January feeder cattle futures lost 0.62 cents to 166.52 cents/pound and March tumbled 0.70 to 165.67.
Resurgent cash prices sparked today’s hog gains. Anticipation of short-run weakness in cash and wholesale prices sent hog futures lower Tuesday. However, the yesterday’s late cash and wholesale quotes came in higher than expected, thereby giving CME prices a substantial boost. Pork losses posted at midday apparently did little to discourage bulls. February hog futures rallied 0.87 cents to 86.52 cents/pound in late Wednesday morning action, and June jumped 1.00 to 99.90.