Corn futures closed 3 to 9 cents on Wednesday. The market closed higher but well off of sessions highs today. The front month contract (Sept) remained on the defensive as forecasters predict timely rains across the northern Midwest later in the week. However, forecasted rains are not expected to erase the damage already done to remainder of the production region. Increasing concern that average yields for this year’s corn crop may be the lowest in 10 years added additional support to the market. Doane corn and soybean economists are out on our annual 2012 Crop Tour across the Midwest. For up to date information, commentary, and photos of this year’s 2012/13 corn and soybean crop, please follow us at http://www.doane.com/crop-tour/ or DoageAg on twitter.
Soybean futures closed 45 to 47 cents higher on Wednesday. Soybean prices posted moderate gains throughout the trading session. Prices pulled higher as traders are becoming more concerned about production yields. There is speculation that some analysts are predicting yield declines as low as 40 bushels per acre, causing global stocks to tighten even further. Doane corn and soybean economists are out on our annual 2012 Crop Tour across the Midwest. For up to date information, commentary, and photos of this year’s 2012/13 corn and soybean crop, please follow us at http://www.doane.com/crop-tour/ or DoageAg on twitter.
Wheat futures closed 21 to 26 cents higher on Wednesday. Whether it’s weather in the U.S. or weather across seas; weather has indeed been the driving force behind grain markets today. Wheat prices across all three exchanges closed moderately higher today, almost erasing the previous day’s losses. Prices were supported by long term bullish market fundamentals and dwindling global supply concerns. Adverse weather in Russia, Ukraine, and the Black Sea Region lifted prices as productions estimates continue to fall. News that Morocco may purchase up to 300,000 tonnes of soft red wheat from the U.S. next month for 2012 delivery was also encouraging for market prices.
Cattle futures closed 40 to 85 cents lower on Wednesday. Waning beef demand and lower wholesale beef prices continue to plague the cattle market. Prices were pressured as prolonged hot weather continues to curb demand for beef products. Traders remain reluctant to buy into the market as uncertainty increases on the direction of boxed beef prices the remainder of the summer. Midday boxed beef prices were reported as unchanged for select and 3 cents higher for choice. Cash trade remained undeveloped on Wednesday.
Lean hog futures closed $1 to $2 higher on Wednesday. Market prices soared on Wednesday as grain prices rebounded renewing concerns that hog supplies may indeed become tighter due to rising feed costs. Tuesday’s surge in the pork carcass value also lifted market prices on today. Other supportive factors for the market today were higher outside markets and the lower dollar index.