Corn futures were sharply higher on Wednesday, closing with near limit gains. The market was supported by the bullish Acreage and Stocks reports from the USDA this morning. USDA pegged acreage at 87.872 million, down 1.4 million from the average trade estimate. This compares to planting intentions of 88.8 million acres and plantings last year at 86.5 million. Corn stocks on June 1 were 4.310 billion bushels, down about 290 million from trade expectations. July closed 29 1/4 cents higher at $3.54 1/4 and December was 29 1/2 cents higher at $3.73 1/2.
Soybean futures settled mixed on Wednesday. The July contract was supported by tight old-crop supplies and the smaller than expected June 1 stocks number. USDA pegged grain stocks as of June 1 at 571 million bushels, down about 25 million from the average trade estimate. New-crop futures were pressured by increased acreage. USDA pegged soybean areas at 78.868 million acres, up about 675,000 acres from the average trade estimate. July closed 1 1/4 cents higher at $9.48 1/2 while November was 9 1/2 cents lower at $9.02 1/2.
Wheat futures traded strongly higher on Wednesday. The market rallied to a six-week high on short-covering and spillover support from corn. But further gains were limited by USDA’s spring wheat acreage estimate of 13.907 million, up about 175,000 from trade expectations. All wheat acreage was pegged at 54.305 million, up about 500,000 from trade expectations. Grain stocks on June 1 were also bearish at 973 million bushels compared to trade expectations of 940 million. CBOT July was 22 3/4 cents higher at $4.64 3/4, KCBT July ended 19 3/4 cents higher at $4.88 and MGE July closed 14 1/2 cents higher at $5.07.
Cattle futures closed higher on Wednesday. The market was supported by reports of $91 cash trade, up $1 from some early week business. Firm boxed beef prices and smaller showlists prompted the higher prices. Deferred contracts were supported by strength in corn that could limit beef production if feed prices are higher. August ended $1.28 higher at $90.03 and October was 90 cents higher at $91.25.
Lean hog futures traded higher on Wednesday. Short-covering and fund buying helped prices rebound following recent losses. The deferred contracts were supported by the rally in corn that could curb pork production into next year. Gains were limited by weakness in pork prices and concern about near-term demand for hogs with some packers closed on Friday and most closed on Monday for the July fourth holiday. July is 48 cents higher at $79.23 and August was 70 cents higher at $81.65.