Corn futures are weak again Wednesday morning. Monday’s USDA data essentially confirmed that the corn market will be very well supplied during the coming weeks and might be swamped by a record crop this fall. That’s the gist of the subsequent price breakdown and persistent weakness yesterday and today. However, traders may square positions prior to the weekend, since weather news over the July 4 holiday often sparks a big CBOT reaction. September corn slipped 2.0 cents at $4.14/bushel Tuesday night, while December lost 2.0 to $4.2075.
The soy complex is building on Tuesday’s late firmness. The fact that the old-crop situation for beans and meal remains tight is probably supporting the soy complex in the wake of Monday’s breakdown, although new-crop prices continue lagging. As in the corn pit, soy traders may lighten up positions before the long holiday weekend. August soybeans bounced 1.25 cents to $13.29/bushel in early Wednesday trading, while August soyoil slid 0.19 cents to 38.78 cents/pound, and August soymeal rose $1.8 to $431.8/ton.
The wheat markets also remain under pressure. Little fresh news concerning wheat emerged overnight. That explains the general lack of price movement and the widespread slippage, since the global wheat situation and concurrent corn action point in that direction. September CBOT wheat futures skidded 1.0 cent to $5.715/bushel shortly after sunrise Wednesday, while September KCBT wheat stumbled 2.0 cents to $6.8675, and September MWE futures dipped 2.5 to $6.6775.
Climbing beef prices are again encouraging cattle bulls. The cattle/beef industry worries about a summer drop in prices across the board, since the markets often hit their annual lows in early-to-mid-summer. However, beef prices have continued marching higher, thereby spurring fresh buying at the CME. August cattle rallied 0.35 cents to 151.85 cents/pound as Wednesday dawned over Chicago, while December gained 0.17 to 155.55. Meanwhile, August feeder cattle jumped 0.92 cents to 216.70 and October feeders climbed 0.70 to 217.97 cents/pound.
Hog futures are mixed again Wednesday morning. Although Friday’s quarterly USDA Hogs & Pigs report was clearly bullish for the hog outlook, this week’s early cash and wholesale action has been mixed at best. Indeed, pork prices tumbled Tuesday, thereby undercutting CME quotes. August hog futures declined 0.17 cents to 130.25 cents/pound in Tuesday night action, while December slumped 0.07 cents to 99.77.