The markets were decidedly mixed Tuesday night

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Corn futures seemed to follow wheat higher Tuesday night. Traders are becoming less inclined to add to positions at this point with the USDA Acreage and Quarterly Grain Stocks reports due out Friday morning. Moreover, the mixed implications of overnight strength in stock index futures and the U.S. dollar implied flat commodity values. That seemingly enabled corn futures to follow wheat higher in response to overnight news that China is set to buy large amounts of the latter on the international market. July corn futures rose 4.75 cents to $6.615/bushel early Wednesday morning, while December inched up 1.75 cents to $5.4625.

Profit-taking may have undercut soybean futures overnight. Soybean futures rose substantially to start this week, so bullish traders now seem to be looking to reduce their holdings ahead of the Friday-morning USDA reports. Weak palm oil prices and the cancelation of a Taiwanese purchasing tender may also have depressed the soy complex. July soybean futures declined 7.25 cents to $15.18/bushel just after dawn Wednesday, while July soyoil dipped 0.24 cents to 46.90 cents/pound, and July soymeal slid $0.5 to $458.3/ton.

News of Chinese demand likely boosted wheat futures Wednesday morning. That is, after several days of rumors, Chinese officials announced that heavy rains damaged 10 million tonnes of recently harvested wheat, which will force it to actively tap the international market to make up those supplies. The rumors probably mitigated the bullish impact of the news, but it certainly appears supportive of the golden grain outlook. July CBOT wheat gained 2.25 cents to $6.78/bushel in early Wednesday electronic trading, while July KCBT wheat added 1.75 cent to $7.06, and July MGE futures advanced 1.0 cent to $8.1025.

Cattle futures are seemingly drawing support from rebounding equities. Despite generally negative influences, especially the wholesale weakness seen so far this week, cattle futures rose slightly Tuesday night. That may simply reflect a lack of commitment by many traders, but we suspect the economic strength implied by the equity index rebound encouraged cattle market bulls. August cattle climbed 0.10 cents to 121.22 cents/pound just after dawn Wednesday, while December was steady at 126.77. August feeder futures also gained 0.12 cents to 148.00 cents/pound, while November improved 0.10 cents to 152.97.

Hog futures were mixed in overnight trading. Although the cash markets have rather obviously posted a major high and will probably continued working their way lower through early summer, wholesale values rose strongly again Tuesday afternoon. That largely explains the nearby futures gains posted Tuesday night, as well as the slippage in deferred futures. July hog futures lifted 0.15 cents to 100.30 cents/pound in early Wednesday morning action, whereas the December contract skidded 0.05 cents to 82.55.

Mixed influences had a similar effect upon cotton futures Tuesday night. Delivery concerns seemed to support the nearby July and October cotton contracts in trading early Wednesday morning, while increased expectations for the 2013 U.S. crop seemed to weigh upon deferred futures. The mixed nature of overnight equity and U.S. dollar movements, as well as divergent grain and soy markets probably added to the general confusion ahead of the Friday morning USDA reports. July cotton edged 0.01 cent higher to 85.10 cents/pound early Wednesday, but December lost 0.26 cents to 84.69.

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