Grains are higher on China buying
Unconfirmed news of China having recently bought 3 cargoes of U.S. corn seemingly inspired some buying. Corn prices were also benefited from the strength spilling over from the surge of oil values. In addition, tightness of supplies and no deliveries were strong support. Weather forecasts mentioned rain will be needed in a few southwestern Corn Belt areas in the next coming week. But most of the areas will still be under great growing conditions. September futures are 0.75 cents lower to $5.3225/bushel, while December remained unchanged at 502.75. The next market commentary will be released on Monday, July 8.
The soybean futures proved surprisingly strong Wednesday. Tightness of supplies along with low deliveries continued to buoy the markets. Moreover, a surge of oil prices also helped pull the soy complex higher. Finally, higher palm oil value also pushed the bullish performance. August soybean futures jumped 7.75 cents up to $14.4125/bushel. August soybean meal descended $0.3 to $432.6/ton, but August soyoil ascended 0.28 cents to 47.11 cents/pound, November soybean prices grew 8.25 cents to $12.5075 /bushel. The next market commentary will be released on Monday, July 8.
Wheat started the day firmly on export news that China bought 300000 tonnes of Australia wheat and 3600000 tonnes of U.S. wheat recently. The cut in the wheat production projection from some analysts provided a positive impact to the market. Delayed harvests due to the rain in the Plains and Ohio River Valley also supported the wheat values. However, gains are still capped by the broad expectation of harvests. September CBOT wheat advanced 6.75 cents to $6.65/bushel, while September KCBT wheat increased 3.75 cent to $6.945/ bushel, but September MGE wheat futures moved 0.5 cents lower to $7.7025/bushel. The next market commentary will be released on Monday, July 8.
Cattle futures closed 0.05 to 0.32 cents higher on Wednesday. Futures trimmed early gains on reports of lower cash trade in Kansas at $119, down $1 from last week. Beef prices managed modest gains at midday and were from 60 cents to $1.50 per cwt higher so far this week. Feeder cattle were steady/mixed Wednesday. Profit taking set in after the steep rally over the past two weeks. August cattle closed 0.55 cents higher to 121.95 cents/pound in electronic trade, while October was 0.30 cents higher at 126.22. August feeder cattle were 0.05 cents higher to 150.95 cents/pound. The next market commentary will be released on Monday, July 8.
Hogs futures proved vulnerable to fresh selling Wednesday. Hogs futures traders may now believe the seasonal hog/pork weakness has run its course. Although the pork cutout was down $1.50, a significant ($16 per cwt) drop on pork belly depressed the swine industry. August hogs closed 0.22 cents higher at 96.85 cents per pound while October hogs settled 0.15 cents lower at 85.15. The next market commentary will be released on Monday, July 8.