Corn futures are testing support Wednesday morning. The corn market pushed above chart support last week, but reacted weakly to bullish USDA news Monday. Thus, the subsequent slide has not been terribly surprising. Nearby futures are now testing technical support associated with short-term moving averages. Tuesday night’s general lack of news is contributing to the technical dominance. March corn slid 2.0 cents to $4.395/bushel early Wednesday morning, while May dipped 2.25 to $4.45.
Soybeans seem to be consolidating Tuesday’s advance. Soybean futures appeared doomed to a substantial decline after Monday’s failed breakout attempt. However, cash strength inspired yesterday’s strong rebound. Prices stabilized overnight, thereby suggesting the market currently lacks the impetus for a decisive move higher. Soyoil futures rose in concert with Asian palm strength, but that seemingly did little to boost the beans. March soybeans skidded 1.25 cents to $13.335/bushel Tuesday night, while March soyoil rose 0.11 cents to 38.96 cents/pound, and March soymeal sagged $0.8 to $448.4/ton.
Wheat futures were mostly lower overnight. The wheat markets exhibited varying degrees of strength yesterday, with weather and transport concerns boosting Kansas City and Minneapolis prices, respectively. Chicago futures also rose modestly, thereby seemingly reflecting general fundamental strength. They appeared to be consolidating those gains Tuesday night, with prices moving little in pre-dawn trading. March CBOT wheat futures inched down 0.25 cent to $5.90/bushel in early Wednesday action, while March KCBT wheat futures dipped 1.75 cents to $6.6375, and March MWE futures slumped 0.25 to $6.61.
Cash optimism continues supporting cattle futures. CME cattle futures surged in response to increased packer bids for Southern Plains animals Tuesday. Prices rose farther overnight, thereby implying traders expect a strong rebound from last week’s drop. Bears probably gained hope from Tuesday afternoon wholesale losses. April cattle futures climbed 0.50 cents to 141.67 cents/pound in pre-dawn Wednesday trading, while August lifted 0.22 cents to 131.25. Meanwhile, March feeder cattle surged 0.57 cents to 169.35 cents/pound, and May jumped 0.60 to 170.95.
Hog futures appeared to follow cattle higher Wednesday morning. The cash hog markets reportedly rose slightly Tuesday, while wholesale pork slipped. Those developments at least partially explained Tuesday’s futures weakness. Nevertheless, CME prices bounced moderately overnight, which may have reflected spillover support from the cattle market. April hogs advanced 0.35 cents to 94.52 cents/pound as Wednesday dawned over Chicago, while June rallied 0.30 to 104.97.
The cotton market is trying to sustain Tuesday’s strong close. Financial market strength apparently played a significant role in boosting cotton futures to six-month highs yesterday, although talk of tightening U.S. supplies almost surely encouraged buying as well. The ICE market proved rather mixed overnight, as traders evaluated the situation. March cotton dipped 0.02 cents to 88.65 cents/pound just after sunrise (EST) Wednesday, while July cotton tumbled 0.36 lower to 87.85.