Corn futures rebounded on Wednesday morning in response to tight supplies and technically driven buying after the recent sharp decline. There were no deliveries against July futures. Reports from China indicate that China recently purchased 3 cargoes of U.S. corn, although there is no confirmation from USDA. However, favorable weather and improved crop condition ratings are limiting gains. Weather models do move the high pressure ridge a little further east late next week which could impact the western Corn Belt. September futures are 5.25 cents higher to $5.3825/bushel early Tuesday, while December is 5.25 cents higher to $5.08.

The soybean futures turned decisively higher early Wednesday. Old crop tightness is supportive as cash movement is expected to slow during the July 4th holiday. Firm cash basis also powered soybeans and the meal market higher. Soyoil might be benefit from higher palm oil values. August soybean futures jumped 15.5 cents up to $15.875/bushel Wednesday morning, while August soybean meal rallied $4.10 to $437/ton, and August soyoil increased 0.27cents to 47.1 cents/pound, November soybean prices climbed 17.25 cents to $12.5975 /bushel.

Wheat futures are also higher along with the other grains Wednesday morning. Weather looks favorable for the winter wheat harvest in the Plains. Rain could threated progress in the eastern Midwest. In export new, the Japanese government bought 42,910 tonnes of U.S. feed wheat. More significantly, China purchased 300,000 tonnes of Australian new-crop. China appears to be using the recent price weakness to build boost state reserves. September CBOT wheat advanced 11.75 cents to $6.7/bushel, while September MGE wheat futures jumped 5.25 cents to $7.76/bushel, while September KCBT wheat increased 10.5 cents to $7.0125/ bushel.

Cattle futures are 0.12 to 0.15 cents higher in early trade Wednesday. Futures continued to consolidate just below last week’s high for the August contact at 123.12. Beef prices edged higher on Tuesday, helping to underpin futures prices. Cash trade is still on hold. It’s not clear if this week’s cash trade will get underway ahead of following the July 4th holiday. August cattle are 0.15 cents higher to 122.05 cents/pound in electronic trade, while October is 0.12 cents higher at 126.05. Feeder cattle futures are lower; the August contract is down 0.30 cents to 150.60 cents/pound.

Hogs futures moved slightly lower after overnight trading. Seasonally reduced hog and pork production typically meets robust demand at this time of year. However, the pork cutout was down $1.50 on Tuesday led by sharply lower pork belly prices which plunged $16 per cwt. Demand for bellies has slowed after the recent price run up. August hog futures dipped 0.375 cents to 96.25 cents/pound Monday, while the December contract declined 0.25 cent to 81.85 cents/pound.

Cotton futures started the day with new crop and old crop divergence. That is the deferred contract seemingly benefited substantially from the strength spilling over from the cotton value in Chinese market. On the other hand, suspicions that improving conditions seemed to weigh on the nearby contract. October cotton skidded 0.06 cents to 86.16 cents per pound and December cotton was up 0.12 cents per pound at 84.84 cents.