Corn futures are consolidating gains Wednesday morning. The corn market rallied from short-term moving average support Tuesday. However, the bounce did not carry prices back above their mid-February highs, which probably caused traders to have second thoughts about trying to push the market higher in the days just ahead. March corn slipped 1.25 cent to $4.545/bushel around dawn Wednesday, while May lost 1.25 to $4.60.
The soy complex stalled near Tuesday’s highs. News of a fresh U.S. export sale boosted the bean and meal futures Tuesday, since the domestic situation already promises to be very tight this summer. Those markets proved rather flat to weak, but oil surged in response to big Asian palm gains. Traders are now concerns about spreading dryness in Southeast Asia. March soybeans skidded 0.5 cent to $13.985/bushel early Wednesday morning, while March soyoil leapt 0.64 cents to 41.22 cents/pound, and March soymeal slid $3.2 to $466.4/ton.
The wheat markets are struggling this morning. Tuesday’s announcement that Egypt had cancelled a wheat sale for 2013/14 delivery appears to be exerting persistent pressure upon U.S. wheat prices, due in part to ideas that the Egyptians simply found American prices too high. We suspect traders are also less concerned about winter freeze damage to winter wheat at this point. March CBOT wheat futures sank 2.0 cents to $6.13/bushel in early Wednesday trading, while March KCBT wheat futures dipped 2.0 cents to $6.885, and March MWE futures slumped 3.0 to $6.71.
Bulls expectations are boosting cattle futures this morning. The wholesale markets built upon Monday’s big gains yesterday afternoon. Cattle futures rallied Tuesday despite mixed midday beef results. The late advance very likely convinced bulls that cash prices will rise substantially again this week. April cattle futures advanced 0.50 cents to 142.90 cents/pound as Wednesday dawned over Chicago, while August gained 0.37 to 132.05. Meanwhile, March feeder cattle ran up 0.37 cents to 171.45 cents/pound, and May rose 0.27 to 173.65.
Rising cash and wholesale prices are also powering the hog advance. Cash hog and pork prices have surged lately, with strong demand seeming to be a major factor. Traders are looking for much more of the same, especially if/when forthcoming supplies fall short of year-ago levels. April hogs climbed 0.50 cents to 101.07 cents/pound early Wednesday morning, while June moved up 0.32 to 109.27.
Cotton futures are firming after bouncing from technical support Tuesday. The cotton market took a huge technical hit Tuesday, with the most-active May contract having fallen over 3.0 cents at one point. However, that low virtually coincided with its 40-day moving average, which at least partially explains the subsequent bounce. Indeed, the market built slightly upon those gains last night. May cotton rallied 0.33 cents to 87.68 cents/pound just after sunrise (EST) Wednesday, while December cotton added 0.18 cents to 77.69.