Corn futures remained under pressure Wednesday morning. Talk of excellent weather and a huge fall harvest continue weighing upon the crop markets. Pragmatic traders are seemingly anticipating a short-term bounce, but the latest news hasn’t been conducive to buying. September corn slipped 1.5 cents to $3.5875/bushel shortly before lunchtime Wednesday, while December dipped 1.5 cents to $3.6675.
Talk of growing export demand and August weather boosted the soy complex. The crop industry is certainly anticipating a massive soybean crop this fall. However, beans and meal remain hot export commodities, as exemplified by recent news of daily sales. Also, if August weather were to turn hot and dry, bean plants pampered by marvelous early-summer conditions could suffer badly, thereby cutting the harvest. August soybean futures surged 12.0 cents to $11.96/bushel late Wednesday morning, while November futures added 11.5 to $10.6925. August soyoil edged up 0.09 cents to 36.02 cents/pound and August soymeal climbed $6.9 to $388.7/ton.
The wheat markets are proving surprisingly firm. Current wheat fundamentals seem less than supportive, especially with the corn market remaining weak. U.S. wheat was also shut out of the latest Egyptian tender, which won’t help market psychology. Nevertheless, prices were mixed around midsession, thereby implying considerable underlying support. September CBOT wheat inched up 0.25 cent to $5.2475/bushel in late Wednesday morning activity, while September KC wheat crept 0.25 cent higher to $6.215/bushel, and September MWE wheat sagged 1.0 cent to $6.1775.
Cattle futures couldn’t sustain their upsurge Wednesday morning. Record beef quotes sparked fresh CME cattle buying yesterday and again overnight. However, Tuesday’s late beef quote was lower than the midsession result; one has to suspect the industry now expects a bout of late-month weakness, which would explain the reversal of big early gains. August live cattle slumped 0.65 cents to 155.30 cents/pound around midsession Wednesday, while December tumbled 0.87 cents to 157.05. Meanwhile, August feeder futures gained 0.02 cents to 216.05 cents/pound and October feeders sank 0.10 to 216.80.
Hog futures fell sharply on bearish expectations. Hog futures acted very well Tuesday, but reversed quickly on poor cash and wholesale news overnight. The losses accelerated today, thereby seeming to reflect talk of improved supply and weaker demand prospects in the short run. August and December hog futures plunged the daily 3.0-cent price limit to 124.57 and 101.50 cents/pound, respectively, in late Wednesday morning trading.