Corn futures slipped overnight. The crop markets lacked for news last night, which is probably a big reason the corn market barely budged. One might cite a newspaper story indicating Hershey is looking at switching from high-fructose corn syrup to sugar in some products, but that’s not going to happen quickly. Weakness spilling over from the wheat and bean pits probably caused the corn slippage. March corn futures skidded 0.25 cent at $3.8175/bushel Wednesday night, while July slid 0.25 to $3.9725.
South American production prospects still seem to be depressing the soy complex. The latest forecasts point to continued rainfall for growing South American crops, which could greatly supplement global supplies when harvested early next year. That news, along with energy and vegoil weakness, seemed to undercut bean and product prices overnight. January soybean futures sank 3.75 cents to $9.945/bushel early Thursday morning, while January soyoil sagged 0.23 cents to 31.71 cents/pound, and January meal slipped $0.8 to $353.0/ton.
US wheat is still seen as uncompetitive on the global market. Although talk about possible production problems for currently growing wheat crops recently powered a big rally in U.S. futures, traders have been reminded that U.S. wheat is not competitive in the international markets. Thus, futures are under pressure again this morning. Traders probably expect a poor result on the weekly Export Sales report. March CBOT wheat fell 10.25 cents to $5.7925/bushel in early Thursday action, while March KC wheat tumbled 10.0 cents to $6.2975/bushel and March MWE wheat slumped 6.75 cents to $6.145.
Cattle futures followed through on Tuesday’s losses yesterday. Tuesday’s CME breakdown did considerable damage to the live cattle charts. That probably reflected significant beef weakness on late-day reports. Bulls couldn’t spark a bounce despite steady-firm news on the midday beef report. Some technical factors suggest Thursday firmness. February live cattle plunged 1.92 cents to 167.12 cents/pound late Wednesday and April dove 1.90 at 166.85. January feeder cattle futures stumbled 0.72 cents to 234.82 cents/pound and March feeders dropped 1.57 to 231.90.
Spot market weakness continued weighing on hog futures Wednesday. CME futures continued declining in concert with wholesale prices yesterday, with cash weakness also seeming to encourage selling. Traders apparently worried about the demand outlook, since the 2015 contracts led the way lower. Late afternoon reports indicated firm spot quotes than at noon, which may spark a bounce on today’s opening. February hog futures plummeted 2.12 cents to 86.87 cents/pound at their Wednesday close, while June hogs crashed 2.25 cents to 94.35.