Corn futures closed 13 to 14 cents higher on Wednesday. Corn future finished higher today as soybean futures soared and buying. Trade sources confirmed that several commodity funds purchased approximately 120,000 CBOT corn contracts today pushing the December contract above $8 per bushel again. Other noteworthy news surrounding the market are on a global level with news that corn acres in Argentina are expected to decline approximately 10 percent while Brazilian farmers are anticipated to plant about 2% more corn due to increased acreage. September closed up 13 1/4 cents at $7.93 and December closed 14 1/2 cents higher at $8.04.
Soybean futures closed 36 to 39 cents higher on Wednesday. Soybean futures extended gains to close moderately higher today. The general supply/demand fundamentals are keeping the market securely underpinned. With soymeal prices at record high levels as well, the incentive buy and crush soybeans into soymeal has also been beneficial for prices. Global demand for the oilseed remains firm while soybean stocks are anticipated to be extremely tight due to this year’s devastating drought across the Midwest. September closed 36 1/4 cents higher at $16.60 while November closed 39 cents higher at $16.37.
Wheat futures closed 6 to 10 cents higher on Wednesday. Trade in the wheat market was relatively quiet today with support tied to gains in the corn and soy markets. After plummeting on news that Egypt bought substantial amounts of wheat from Russia and the Ukraine on Tuesday, prices stabilized on speculative news that Russia may implement some form of export control because exportable grains may run out later this year. Other supportive factors for the market today were renewed concern over global wheat supply as Russian wheat yields were reported down 30.5 percent so far this year. September wheat at CBOT closed 5 3/4 cents higher at $8.45; KCBT closed 6 cents higher at $8.57; and MGE closed 10 3/4 cents higher at $9.11.
Live cattle futures closed lower on Wednesday. Gains in the market eroded shortly after midday as traders square positions ahead of this Friday’s Cattle on Feed Report. Analysts estimate an 18 percent increase in cattle placements versus the previous month but an 8.3 percent decrease compared to the previous year. However, the market continued to see support from soaring boxed beef prices and expectations for higher cash market prices again this week. The October contract closed 25 cents lower at $126.65 while December closed 7 cents lower at $128.85.
Lean hog futures closed sharply lower on Wednesday. Nearby contracts posted moderate losses the majority of the day session despite improvement in the pork carcass value. Traders suspect the recent downturn in market prices are a result of improved weather conditions for producing and transporting hogs, implying increased production. The recent prices breaks in the corn market could also lead to higher pork supplies as well. Trade in the cash market was relatively quiet today with prices reported steady to lower as packers lower bids due to increased supply. The October contract closed down $1.83 at $75.55 while the December contract closed down $1.55 at $73.20.