Livestock gains left crop markets in the dust Wednesday
oane offices will be close for the Independence Day holiday July 3-4. Corn futures weakened again Wednesday morning. The corn market declined Wednesday, with the industry seeing well-supplied conditions. The fall crop is likely to set a record, but traders may have added to short positions before the July 4 holiday since short-term forecasts suggest very benign Corn Belt weather during the critical pollination period. September corn slipped 3.75 cents to $4.1225/bushel in late Wednesday action, while December lost 4.75 to $4.18.
The soy complex couldn’t sustain early firmness. The tight old-crop situation for beans and meal supported those prices Tuesday night, but the soy complex turned unanimously lower this morning. That probably reflected the massive planted acreage total posted Monday, as well as the favorable weather now dominating the Midwest. August soybeans fell 13.0 cents to $13.1475/bushel at their Wednesday settlement, while August soyoil slid 0.40 cents to 38.57 cents/pound, and August soymeal sagged $3.3 to $426.7/ton.
The wheat markets diverged somewhat Wednesday. Little fresh news concerning wheat emerged at midweek, but one has to wonder if the latest forecasts are weighing on the KC & MWE markets. That is, the northern Plains are looking drier and warmer, which will be welcomed by spring wheat. Southern areas may get additional rain, which might actually hamper the winter wheat harvest. September CBOT wheat futures edged up 3.0 cents to $5.755/bushel as Wednesday’s CBOT session ended, while September KCBT wheat fell 7.0 cents to $6.8175, and September MWE futures slumped 5.25 to $6.65.
Cattle futures resumed their advance Wednesday afternoon. The cattle/beef industry worries about a summer price drop, since the markets often hit their annual lows in the weeks ahead. Surging beef prices have spurred CME buying lately, but late-session news of fresh cash gains sent CME prices even higher. August cattle officially settled up 0.83 cents at 152.32 cents/pound Wednesday, while December gained 0.20 to 155.57. Meanwhile, August feeder cattle advanced 0.42 to 216.20 and October feeders climbed 0.10 to 217.37 cents/pound.
Fresh wholesale strength sparked fresh CME hog gains. This week’s early cash and wholesale action was mixed at best, thereby curtailing the bullish reaction to last Friday’s Hogs & Pigs report. However, pork prices spiked at midday Wednesday, which spurred renewed Chicago buying of deferred futures. August hog futures actually declined 0.07 cents to 130.35 cents/pound at their Wednesday closing, while December ran up 1.20 cents to 101.05.