Corn futures closed mixed on Wednesday. Old-crop contracts were supported by short-covering ahead of the June Acreage and Stocks reports due out Thursday morning and on tight cash markets. Talk of export sales to Mexico and China were supportive. But new-crop was pressured by positioning ahead of the USDA reports. Weather forecasts are non-threatening for the crop the next couple of weeks. July closed 15 cents higher at $6.98 while December was 2 1/2 cents lower at $6.50 1/2.
Soybean futures were slightly higher on Wednesday. The market was higher, but gains were limited by positioning ahead of the Acreage and Stocks reports due out on Thursday morning. Pre-report trade estimate for the Acreage report average 76.5 million compared to planting intentions of 76.6 million. Weakness in the dollar and strength in crude oil were also supportive factors. July closed 3 1/2 cents higher at $13.31 1/4 and November was 4 cents higher at $13.23.
Wheat futures traded higher on Wednesday, with sharp gains at the MGE leading the way. Wet weather has prevented some spring wheat planting in the northern Plains and now flooding threatens some acreage that was seeded. USDA will release a new Acreage report on Thursday morning. Winter wheat futures were pulled higher as well, but gains were limited by pre-report positioning. CBOT July ended 1 cent higher at $6.41 1/4, KCBT July was 1 1/4 cents higher at $7.45 and MGE July ended 37 cents higher at $8.76.
Cattle futures closed mixed on Wednesday. Nearby months were lower as traders wait for the cash market to develop. There is some concern that the cash market could slip this week due to larger showlists and tightened packer margins. Slaughter schedules will be shortened next week due to the holiday. August closed 18 cents lower at $11.58 and October was 15 cents lower at $118.40.
Lean hog futures traded higher on Wednesday. Despite the sharp drop in pork cutouts and weakness in the cash market, futures rallied on the discount of futures to cash. Optimism for pork exports to China is an underlying support factor for the market. Pork cutouts were down $3.37 on Tuesday and cash trade was steady to $1 lower today. July closed 85 cents higher at $95.23 and August was 83 cents higher at $93.18.