Wednesday’s crude oil surge may have sparked a commodity comeback. Today’s news seemed negative for corn, with fine weather, U.S. dollar strength and increased ethanol stocks seemingly weighing on the market in early trading. And yet, CBOT prices rebounded in late-morning action, possibly in reaction to rumors of a Saudi pipeline explosion and sharp rise in crude oil futures. December corn futures bounced 1.0 cent to $3.655/bushel around midsession Wednesday, while May rose 1.0 to $3.87.
The soy complex came back from its early lows. Current conditions also appeared bearish for the soy complex in early trading, but beans and oil rebounded from early lows along with corn. The fact that meal hardly participated in the bounce suggests talk of crude oil leadership was valid. January soybean futures had sank 3.5 cents to $10.065/bushel late Wednesday morning, while December soyoil had fallen 0.39 cents to 32.68 cents/pound, and December meal dipped $2.5 to $370.0/ton.
Egyptian news is likely weighing on the wheat markets. Wheat futures proved relatively weak late Wednesday morning, lagging the corn and soy rebounds significantly. That probably reflected midmorning news that U.S. wheat was once again shut out of large Egyptian tender. U.S. grain is apparently less than competitive on the global market. December CBOT wheat slumped 7.5 cents to $5.23/bushel as the lunch hour loomed Wednesday, while December KC wheat fell 7.0 cents to $5.8325/bushel, and December MWE wheat dropped 7.75 to $5.6175.
Demand concerns are reportedly weighing on cattle futures. The cattle/beef situation remains very tight, as reflected by elevated fed cattle prices. However, traders worry that recent beef weakness reflects declining demand as consumers shift to pork and chicken. December live cattle futures dipped 0.55 cents to 166.10 cents/pound just before lunchtime Wednesday, while April futures slid 0.32 to 165.95. Meanwhile, January feeder cattle futures slumped 0.65 cents to 230.95 cents/pound, and March feeders sagged 0.45 to 228.07.
Increasing supplies worry hog market bulls. The spot hog and pork markets have remained persistently weak lately and CME traders now seemingly worry that those trends will worsen if hog supplies post their usual seasonal surge during the days and weeks ahead. December hog futures dove 1.10 cents at 86.87 cents/pound late Wednesday morning, while April hogs tumbled 1.27 to 87.42.