Wheat surges higher on Ukrainian export ban
Corn futures closed lower despite strength in the other grains markets. Initially corn futures moved higher during the overnight session on support from firm gains in the soybean markets. Wheat futures jumped sharply on news of a Ukrainian export ban before midsession, but commercial buy interest in the corn market lagged throughout the day session. Poor export demand and lack of supportive short term fundamentals pressured futures to a lower close. December corn is trading 2 ¼ cents lower.
Soybean futures close midweek with double digit gains. Contrary to the corn market, soybean futures posted firm gains on Wednesday after closing with strong losses during the previous trading session. Soybean futures were securely underpinned by robust export demand of soybeans. This morning, USDA reported export sales of 105,000 tonnes of soybeans to unknown destinations for the current marketing year. November soybean closed 16 ½ cents higher.
Wheat futures closed with solid gains news of a Ukrainian export ban on wheat. News that Ukraine may implement an export ban on wheat has been circulating for several days and has finally been confirmed. The Ukraine announced that it plans to implement this ban as early as next month due to lower than expected output. This announcement is anticipated to increase demand for U.S. wheat. December futures at CBOT closed 15 ¼ cents higher; at KCBT closed 13 ½ cents higher; and MGE closed 10 cents higher.
Live cattle futures closed higher on Wednesday. Cattle futures eased from intraday highs but managed to close on the upside across the board. Early on the market was supported by the recovery in the outside markets and good demand for beef products. Cash trade optimism by traders is also supporting nearby futures. Cash trade has yet to develop but is anticipated to be steady to $2 higher this week versus the previous week’s trade. December cattle futures closed 23 cents higher.
Hogs futures rebounded to close higher on Wednesday. Hog futures traded defensively most of the session with pressure tied to softening demand and residual selling. Demand for pork products remains sluggish heading into the holiday season and has traders quite nervous concerning the direction of the marker. Cash trade showed signs of improvement with prices steady to higher today. Packer margins are good and are a favorable factor as processors get ready for weekend slaughter. December hog futures closed 13 cents higher.