Corn futures settled 2 to 7 cents higher on Wednesday. Corn futures closed higher despite pressure from the outside market and falling prices in both the wheat and soybean markets. Prices were boosted earlier as July/December spreads adjusted following market declines in the prior trading session. The market is seeing added support on forecasts for rising temperatures across the U.S. Midwest this weekend.
Soybean futures settled 16 to 23 cents lower on Wednesday. Soybean futures plunged as news that China may cancel or roll forward old crop sales to the new year as their crushing margins decline. The soybean meal market saw some improvement,closing the session mixed while the soybean oil market was more than 140 points down. The rising value of the dollar index as well as the impeding EU debt crisis was bearish for the market.
Wheat futures are settled 7 to 17 cents lower on Wednesday. Wheat futures continued to tumble for the second day in a row. The EU economic situation depressed prices as investors looked to unload risky assets. Other bearish factors for the market were forecasts of favorable rain in Russia, a rising dollar index and profit taking on last week’s price gains. However, weather conditions are expected to remain dry into the weekend, which should limit losses.
Cattle futures closed 90 cents to $1.80 lower on Wednesday. Cattle futures were down moderately on yesterday’s bearish cold storage report. The report showed high beef storages for the second consecutive month. April stocks were reported at 517 million lbs up 3 percent from the previous month. Trade in the cash market is reported as light in Texas and Nebraska, with prices $2 lower than last week. Beef cutout values were up slightly at midday, but not enough to constrain losses.
Lean hog futures closed 80 cents to $1.30 cents lower on Wednesday. Hogs futures closed lower as yesterday’s USDA Cold Storage Report showed frozen pork stocks were up 20 percent at 659 million pounds from the previous year. The pork cutout value declined more than $2 on Tuesday, leaving packers concerned about seasonal demand strength. Trade in the cash market is expected to be steady to lower as processors try to limit their losses.