Livestock futures led most ag markets lower Wednesday morning

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Crop tour results continue weighing on corn and soy futures. A privately sponsored tour of Corn Belt fields is yielding some very high forecasts for the fall harvest, thereby exerting fresh downward pressure upon new-crop corn and soy futures. The nearby corn contracts are threatening to fall decisively below short-term moving average support, which might spark more substantial losses. September corn slid 5.0 cents to $3.575/bushel around midsession Wednesday, while December sank 6.0 to $3.6625.

The soy complex is moving in surprising directions today. Spot market strength and vigorous demand are still supporting nearby beans and meal, and big harvest forecasts are depressing new-crop prices. However, the soyoil market posted a big bounce this morning, with no news apparently responsible for the move. September soybean futures inched up 0.25 cent to $11.205/bushel late Wednesday morning, while November futures fell 10.5 cents to $10.4225. September soyoil bounced 0.38 cents to 33.04 cents/pound, but September soymeal slipped $0.1 to $399.7/ton.

The wheat markets turned decidedly lower Wednesday morning. Although recent news has seemed somewhat supportive of wheat market prospects, futures proved unable to sustain their early-week rebound. Indeed, the fact that they seemed to fail at pivotal technical resistance associated with 40-day moving averages may have set the stage for larger declines. September CBOT wheat tumbled 8.75 cents to $5.3725/bushel just before lunchtime Wednesday, while September KC wheat dropped 7.25 cents to $6.1725/bushel, and September MWE wheat slumped 6.25 to $6.105.

Cattle futures suffered a fresh breakdown Wednesday morning. Concerns about the demand outlook and its potentially negative impact on cattle prices apparently sparked a fresh dive in CME cattle prices this morning. Indeed, the sharp drop implies further short-term losses, which very likely exaggerated technical selling. October live cattle futures dove 2.12 cents to 145.10 cents/pound in late Wednesday morning action, while December futures plunged 2.25 to 148.20 cents/pound. Meanwhile, September feeder futures collapsed 2.67 cents to 211.57 cents/pound and November futures crashed 2.67 cents to 209.87.

Hogs are following cattle lower. The ongoing breakdown in cash hog and wholesale pork values continued Tuesday, thereby keeping pressure on CME futures despite discounts already built into Chicago prices. The breakdown in the cattle pit rather clearly exacerbated the hog/pork weakness as well. October hogs tanked by 1.90 cents to 92.95 cents/pound as the lunch hour loomed Wednesday, while December plummeted 2.30 cents to 86.32.

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